New York and Northern Virginia were hailed as victors after Amazon decided to accept the $3 billion in combined corporate welfare to split its second headquarters between those two cities. But the real winners were the taxpayers of all the cities and states with losing bids.
Now that the Amazon sweepstakes is over, we’re getting a better sense of the loot that was being offered to Amazon as desperate local leaders groveled at the feet of Amazon CEO Jeff Bezos. And it is not a pretty sight.
The Atlanta Journal Constitution reported on the insane bundle of money and perks that Georgia had offered Amazon: “A state-funded academy to train Amazon’s employees. An exclusive lounge — with free parking — at the world’s busiest airport. An Amazon-dedicated car on MARTA. And more than $2 billion worth of publicly-funded incentives.”
Georgia was not alone as 20 finalists tripped over each other for the promise of Amazon bringing as many as 50,000 high-paying jobs to their regions.
Columbus offered a package that included “property-tax abatements, income-tax refunds and a transportation plan.” Chicago offered $2 billion in tax breaks and promised infrastructure spending. New Jersey had offered a staggering $7 billion package, and not to be out done, Maryland had offered an eye-popping $8.5 billion.
It’s unfair for states to pledge taxpayer money to provide advantages to large businesses with plenty of money that they would not provide to other businesses. Instead of trying to lure specific corporations with targeted incentives, states would be much better off if they fostered an environment that was conducive to growth through keeping taxes low and regulations to a minimum. Even if that means they lose out on something like the Amazon headquarters, they’ll still be attractive to many more businesses and talented individuals and benefit over time.
