Paltersville - Extinction Economics

325
by Super User, 5 months ago
0 0
A few details:

In the part where AT&T is mentioned, there was originally going to be a bunch of companies named there, but it took too long for Terence to say all the info so AT&T was randomly picked.


The info for all the companies was this:

Company: Pretax Income: 50% Tax Rate: 35% TR: 21% TR:
Apple $64.1 Billion (B) $32.05 B $22.4 B $13.5 B
Google $27.2 B $13.6 B $9.5 B $5.7 B
Microsoft $29.9 B $14.95 B $10.5 B $6.3 B
Walmart $20.5 B $10.25 B $7.2 B $4.3 B
Amazon $3.8 B $1.9 B $1.3 B $0.8 B
AT&T $15.1 B $7.6 B $5.3 B $3.2 B
Comcast $15.3 B $7.7 B $5.4 B $3.2 B

TOTALS: $145.5 B $72.7 B $50.9 B $30.6 B

(The above numbers were gathered over the past year (the length of time it's taken to make this cartoon) and are from the Marketwatch website.
Amazon, for example: https://www.marketwatch.com/investing/stock/amzn/financials).

Then these numbers were divided across the total number of employees (according to what I could find through Google - and some of these numbers might not line up with the years for the financial statements above just because of lack of available info. I did the best I could, though):
Apple: 123,000
Google: 88,110
Microsoft: 124,000
Walmart: 2,200,000
Amazon: 132,600
AT&T: 254,000
Comcast: 164,000

TOTAL: 3,085,710


Then the difference between the 50% vs 35% rates and the 50% vs 21% rates were divided across all the employees:

50% - 35%: ($72.743 Billion - $50.92 billion) / 3,085,710 employees = $7,072 per employee.

50% - 21%: ($72.743 Billion - $21.82 billion) / 3,085,710 employees = $16,502 per employee.

So the savings these companies are getting by paying 21% tax instead of 50% tax comes to over $16,000 per employee per year, and about $1,375 a month. But like I say, voicing all that info in the cartoon would be pretty dull, so one company was randomly picked and used. And the part where Terence talks about millions of people with an extra $700 in their pockets each month actually refers to that $1,375 being divided in two (to roughly approximate the two corporate tax rate drops, since each each drop is around the same amount: 50% to 35% is 15%, then 35% to 21% is 14%).
It's not clear in the video, but I want to point it out here to clarify that the character isn't claiming AT&T have millions of employees.


And finally, the story on the company called Gravity and their resulting baby boom came from this story:
https://gravitypayments.com/highlights/gravity-payments-baby-boom/

That's it. Hope you enjoyed the cartoon!