Happy Labor Day and National Payroll Week (imagine creating a system of taxation so complex that no company could pay its workers without the assistance of a contractor who in turn must rely on at least 1 million lines of software).
What does it cost to hire decent people these days? A similar-vintage (i.e., old!) friend in San Francisco recently started a job at a VC-backed AI/robotics company. It would have been rude to ask how much he is getting paid, so of course I did. “About $400,000 per year in cash,” he replied, “plus $500,000 or $600,000 in lottery tickets.” Apparently, the tax value of the lottery tickets is much lower than $500k and, therefore, the current taxes on what might turn out to be worthless aren’t severe.
If you’re wondering why your health insurance bills are so high… A mid-career radiologist friend was offered $1.3 million to work at a community hospital in New Jersey. She turned it down because she doesn’t agree with the progressive politics of the state, a disagreement that would be exacerbated by New Jersey’s high taxes (10.75% for state income, ranked #49 for tax environment by the Tax Foundation; the most recent ranking for tax burden, the percentage of peasant income taxed away by the governing elites, has New Jersey taking 13.2% vs. 15.9% in New York and 7-9% in the most efficient states, such as New Hampshire, Texas, Tennessee, and Florida). As a legacy American (white/Christian) she probably wouldn’t enjoy being represented by her replacement Adam Hamawy, an Egyptian immigrant to the U.S. with an “association with a terrorist Muslim cleric” (Politico) and “an opponent of Israel’s Iron Dome missile defense system and a supporter of a complete arms embargo and the right of return for Palestinian refugees” (Forward).
How soon before all of America’s smart people post “Gone to the Klondike” signs on their doors and can’t be hired because they’re doing AI startups?
Anyone else want to contribute some data on real-world recruiting and pay right now? I feel that the BLS data aren’t the full picture. Median pay for a software developer was supposedly around $131,000 in 2024, but does that include people who can’t program and who work 2 hours/week while being paid for 40 at a state government agency or contractor? I’m more interested in a survey of what it costs to hire someone who is capable and productive.
Related:
Do not forget New Jersey real estate taxes… Always wondered how software developers making under $200,000/year managed to pay those in addition to all other cost of living expenses. Has to be both husband and wife working full time in high stress jobs