woodguru

Amazon rejects the three billion in subsidies and incentives...it's amazon that should be investing billions in the economy of the states they want to locate in. They should be improving the roads and doing things for the community like upgrading the transportation system, not the other way around.

So apparently the deal was that they would be hiring 25,000 employees (not right away)...okay fine, that's roughly a billion in wages if he ever gets to the amount committed to, no more than millions in local taxes. So Bezos says he will be hiring 25,000 employees...possibly. Meanwhile he gets all of the subsidies and write offs as if he has already put that many people to work.

Amazon does not bring but a fraction of the value he is looking for in incentives to any region he decides to locate in, he should be putting the package of what he will do for a state and community together. He should be going to an area like Detroit and rebuilding that community, not trying to locate in a city like New York that doesn't need it the same way. I can see Detroit trying to attract a company, but not at three billion dollars in incentives.

ACP45 Loc: Rhode Island

You raise a good point. I have yet to read a good financial analysis of this deal for NY or Amazon. But read this and see what really killed the deal: https://www.zerohedge.com/news/2019-02-14/nyc-councilman-says-union-dispute-killed-amazon-deal-not-subsidies

ACP45 Loc: Rhode Island

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I was listening to the radio this afternoon, and it was reported that the property taxes Amazon would have paid over the next 10 years would have been $30 Billion. The $3 Billion reduction in property taxes would therefore have reduced the net amount to NY to a mere $27 Billion.

I don't suppose that the local businesses that would have benefited from the 25,000 to 40,000 Amazon employees whose average earnings amount to $130,000 per year are all to happy right about now!

If the article cited above is correct in the assertion that the local politicians, including ACO, were willing to kill this deal over a $3 Billion tax reduction and unionizing Amazon's employees, they may well regret their actions come the next voting cycle.

It would also like to point out the brilliant financial acumen of Alexandria Ocasio-Cortez in this matter. Check out her tweet and comment once Amazon announced their decision to pull out of this deal.

"She added that if New York had $3 billion to give away to Amazon as a part of this deal, it should be able to find the money to pay teachers and fix the subway." (Apparently she does not realized that the $3 billion does not now exist, and never will because the $27 Billion NY would have earned no longer exists). Well done AOC! https://www.zerohedge.com/news/2019-02-14/bezos-pulls-out-amazon-scraps-plan-ny-hq2