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Maybe we are in the wrong business ....
Discussions run-amok, innane banter it all goes here
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Dimitri
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Joined: Nov 25, 2005
Posts: 5884
Location: Southern Ontario

PostPosted: Sun Sep 11, 2011 8:09 am    Post subject: Maybe we are in the wrong business .... Reply with quote

Quote::
Those tax incentives — a collection of deductions, write-offs and credits mostly devised for other industries in other eras — now make video game production one of the most highly subsidized businesses in the United States, says Calvin H. Johnson, who has worked at the Treasury Department and is now a tax professor at the University of Texas at Austin.

Because video game makers straddle the lines between software development, the entertainment industry and online retailing, they can combine tax breaks in ways that companies like Netflix and Adobe cannot. Video game developers receive such a rich assortment of incentives that even oil companies have questioned why the government should subsidize such a mature and profitable industry whose main contribution is to create amusing and sometimes antisocial entertainment.

For example, Electronic Arts of Redwood City, Calif., shipped more than two million copies of Dead Space 2 in the game’s first week on the market this year. It shows a total of $1.2 billion in global profits the last five years using an accounting method that management says captures its operating profits.

But largely because of deferred revenue, deductions for executive stock options and a variety of accounting requirements, the company officially reports a net loss for the period. And the company reports that it paid out $98 million in cash for taxes worldwide in those years.

www.nytimes.com/2011/0...akers.html

A tax rate of 8%, not bad I don't think. Shocked

Dimitri

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Elvis
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Joined: Jul 27, 2008
Posts: 6348
Location: south island New Zealand

PostPosted: Thu Sep 15, 2011 2:27 am    Post subject: Re: Maybe we are in the wrong business .... Reply with quote

pity that those funds arent diverted for the greater good. they pay more you maybe not so much.

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dan1dad
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Joined: Aug 09, 2011
Posts: 248
Location: St.Louis Missery

PostPosted: Thu Sep 15, 2011 8:05 pm    Post subject: Re: Maybe we are in the wrong business .... Reply with quote

they pay 8%, but will get 150% of public services and protections.
we pay 5 times that, and lucky if a cop shows up for a murder within a day.
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dan1dad
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Joined: Aug 09, 2011
Posts: 248
Location: St.Louis Missery

PostPosted: Thu Sep 15, 2011 8:06 pm    Post subject: Re: Maybe we are in the wrong business .... Reply with quote

they pay 8%, but will get 150% of public services and protections.
we pay 5 times that, and lucky if a cop shows up for a murder within a day.
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