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Dell Manufacturing Facility


cityboi

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Simple...

It all comes down to taxes. When a company purchases a new plant, equips it, and so forth, they get to deduct that from their income as a "capital expense." This, in effect, gives them a tax deduction, because the expense feeds off their total income reported to the IRS. When they sell such an asset before it has fully depreciated, they get ANOTHER tax deduction for any loss, if there is one. This is the reason why companies, in this case Dell, sell their newest assets. The other assets are worth much less as a tax deduction, if anything, than the plant in NC, so guess which one goes for a ride? The NC one. After that, they can simply buy more equipment with the money they receive from the sale of that plant to upgrade their remaining facilities and get yet another tax deduction for doing so.

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Just an aside: the husband of a friend works at Dell. He has consistently worked 2+ hours of overtime since the plant's opening.

Not saying that necessarily means anything (other than--going back to the last comment--evidence that Dell needs cheap labor). Just one of those things that make you go "hmm."

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