Tag Archives: taxes

Building the “aerotropolis”

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An article in the Boston Globe discusses a recently-coined phenomenon: the aerotropolis. This refers to the conglomeration of businesses and other uses that now tend to gather around important international airports:

Dulles is no longer an airport but an aerotropolis, a term coined by a University of North Carolina business professor. An aerotropolis is a city of the 21st century, built around a runway in roughly the same way that historic cities grew up around water or rail lines, with a close-in network of businesses, an outer loop of service industries, and suburbs full of homes.

Aerotropolises have emerged in places like the former no man’s zone between Dallas and Fort Worth, in suburban Atlanta, and around Schiphol Airport in the Netherlands, near Amsterdam, Rotterdam, and The Hague. They provide what John D. Kasarda, the UNC professor, calls “connectivity” to the global marketplace. International companies want to locate where their executives can step out their doors and be on another continent eight hours later. Firms producing the highest-value goods want to ship them to markets around the world. (“The Web won’t move a box,” Kasarda declares. “High-end products move by air.”) And businesses with tentacles around the globe want a place where all their people can fly in easily for meetings.

The story goes on to discuss how this did not come about around Logan Airport in Boston, primarily because of space issues. If space is indeed an important concern, this may be tricky to navigate – a city wants an airport relatively close to businesses and travelers can easily get downtown but at the same time, perhaps airports should be located further out as airports themselves require a good amount of land and if the aerotropolis is the goal, this takes up even more space.

This new term also suggests that airports are more than just pieces of infrastructure or places where tourists come and go but rather are important nodes in urban business networks. But some other information might be helpful to better understand the aerotropolis: does the aerotropolis provide more or less benefits than businesses that gather around other modes of transportation (highways, rail lines, seaports)? How does the business generated around airports today compare to the business generated 20 years ago? Which industries in particular benefit from the aerotropolis? How much money do municipalities gain from the aerotropolis versus other land uses?

Translating this into some other terms in use, is this simply an edge city with an airport at its center?

h/t The Infrastructurist

Mortgage interest tax deduction being discussed

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With the federal government looking for more money, a budget deficit commission has been discussing possible changes to the tax code to bring in more revenue. One option among a number of options: limiting or revoking the mortgage interest deduction.

Whatever this commission recommends, I can imagine the political fights that may ensue.

How much income one needs to be considered rich

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Americans tend to think of themselves as middle-class, even wealthy and poor Americans who objectively are in the upper or lower ranks of income. So this question occasionally arises: how much income does one have to be earn to be considered “rich”?

The current case in the news:

Todd Henderson feels like he’s barely making ends meet. He’s a law professor at the University of Chicago. His wife’s a doctor at the school’s hospital. Their combined income exceeds $250,000. They have a nice house, a nanny, kids in private school, a retirement account and a lawn guy…

“A quick look at our family budget, which I will happily share with the White House, will show him that, like many Americans, we are just getting by despite seeming to be rich. We aren’t,” Henderson wrote on the blog “Truth on the Market.”

While Henderson meant for his posting to encourage a debate about taxes, it turned into a public flogging, characterizing him as out of touch or arrogant. More broadly, it has provoked a discussion about what it means to be rich, particularly in an economy where many people are suffering.

Henderson’s no longer part of the conversation, though. The firestorm of online hostility compelled him to delete his essay and declare on Tuesday that he will no longer blog. He declined to comment Thursday. Even his wife is angry at him, he acknowledged in a follow-up blog post.

A few thoughts on this:

1. The Chicago Tribune article cites someone saying earning $250,000 a year is in the top 3 percent of American incomes.

2. At the same time, incomes can vary in their purchasing power in different areas. A $150,000 income living in Manhattan can lead to different things than living with that income in Atlanta.

3. Is this a microcosm of how Internet “discussion” works? It seems like a perfect storm of bad economic times plus widespread attention leads to a bad outcome for having made this argument.

4. Perhaps the real issue is whether people making $250,000 feel like they can live the lifestyle that is associated with such income levels. If they feel like they have to pinch pennies or a lot of the money is taken out in taxes, they might not “feel rich.” From those with lower incomes, this seems absurd: just think what could be done with that money. But having certain incomes leads to certain ideas about what that level of income looks like or how it is to be experienced.

UPDATE 9/24/10 3:36 PM: A piece from the Wall Street Journal fits in with my idea about the income and lifestyle not matching up. The overall idea seems to be that people who make this kind of money may not think they have to or don’t want to reign in their spending.

Getting a new passport to avoid taxes (and other reasons)

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The Financial Times reports an increased number of Americans are looking to turn in their American passports at the UK embassy. The waiting list is growing apparently because Americans are looking to avoid paying taxes on worldwide income and capital gains. As the article notes, the main disadvantage is that a person may not be able to reverse their choice.

It would be interesting to know how many people do this each year. Switching allegiances from one particular country to another seems like a weighty decision.