Update 333: Bronx Cheer for Amazon in Queens
City Loses Site in Firm’s Preemptive Break-Up
In honor of the opening of spring training, we pause to remember the words of Casey Stengel, manager of the New York Mets, who played and mostly lost, compiling the worst record in baseball history in 1962, in Queens: “Come and see my Amazin’ Mets — they have invented ways to lose I never thought possible.”
In another New York moment, Seinfeld immortalized the strategy adopted by the Amazons in response to the Bronx cheer they received from the city: the pre-emptive break-up. What went wrong, who is to blame, who wins, who loses, and who gets the HQ in the wake of the break-up? Read on…
On February 14, Amazon announced it was pulling out of the $1.85 billion deal to build its second headquarters in Long Island City, in Queens, NY. Stimulating economic development using tax breaks — known as economic development incentives — has attracted vocal opposition from local and progressive politicians, as well as from constituents. The failed Amazon deal has raised questions about the state of public financing, specifically the use of these incentives in tax breaks to spur economic growth.
The Changing Face of Public Finance
Increasingly, state and local governments have focused on offering economic development incentives to large corporations as a means of stimulating economic growth, moving away from deficit-financed bonds. These incentives usually come with the promise of significant jobs and a boost to the local economy. Brookings estimates the total amount of state and local expenditures each year ranges from $45 to $90 billion.
Prominent examples in recent years:
- Foxconn: Wisconsin agreed to give $3 billion in tax breaks to Foxconn in exchange for up to 1,300 jobs.
- Carrier: Indiana agreed to give $7 million in tax breaks to Carrier in exchange for keeping 1,069 jobs in state. A year or so later, Carrier cut about 600 jobs.
Corporations were generally not taxed on these economic development incentives, but the TCJA included a provision to count these incentives as corporate income, taxing them at the 21 percent corporate income tax rate. The Joint Committee on Taxation estimates that this will yield $6.5 billion in additional revenue from 2018 through 2027.
This deal structure has been in place in states and municipalities for the last several years. Amazon’s public bidding war brought offers from states across the country, including $4.6 billion in tax incentives over 25 years from Pennsylvania and $5.86 billion over 10 years from Maryland. Eventually they agreed to bring 25,000 jobs to New York and Virginia in exchange for tax breaks of $1.85 billion and $819 million, respectively.
The Amazon Question
Progressives like Alexandria Ocasio-Cortez seem to be making a moral judgment on the idea of corporate incentives altogether, rather than looking at the economic outcome — be it good, bad, or otherwise. Fellow New Yorker Gregory Meeks called Amazon’s decision to pull out of the deal a “sad day for New York.” New York constituents themselves seemed torn: a recent poll showed that 58 percent of city residents supported the deal; 80 percent believed the city should have had more input in the deal-making process.
In a January hearing, New York City Council members took issue with Amazon’s anti-union stance. A company spokesperson signaled that Amazon would not commit to being neutral in any attempts to unionize among its workers in NYC. The reaction from local lawmakers came after the deal was already struck, leaving some wondering why collective bargaining did not come up during the negotiation process.
In addition to the anti-union aspect, Amazon’s deal raised two specific local issues: affordable housing and infrastructure capacity. State Senate Majority Leader Andrea Stewart-Cousins expressed concern about the lack of an infrastructure plan for HQ2 and affordable housing fears from putatively increasing rents. The deal was also struck without input from Queens residents or representatives, but could these issues have been overlooked in the face of 25,000 direct jobs and the creation of countless others through the multiplier effect?
In the wake of the Amazon HQ2 decision and the highly-charged and partisan Foxconn subsidy in Wisconsin, more voices in the Democratic and Republican Party are speaking out against economic development incentives for large corporations. Detractors of these incentives argue that such payments are an example of crony capitalism, but what do empirical studies show?
A March 2018 Brookings report looked at economic development subsidies in four cities across the country: Cincinnati, Indianapolis, Salt Lake, and San Diego. The study concluded that incentives disproportionately go to tech and export-intensive firms and that these industries typically pay roughly 25 percent higher wages than the economy at-large.
The report also showed that 57 percent of incentives went to communities with a greater-than-average poverty rate and concluded that minorities were under-represented in the incentivized industries, due to the advanced nature of the jobs created and the lack of job training requirements in the incentive packages.
2020 and Beyond
It is difficult to say what the collapse of the Amazon HQ2 deal means for economic development incentives, but it is clear that there is a growing and vocal minority of lawmakers, in both state and federal office, that view economic development incentives as immoral government handouts to billion-dollar corporate giants. On the other hand, presidential candidate Sen. Cory Booker made a blatant appeal for Amazon to locate their HQ2 in Newark, NJ instead. The real economic impact may be speculative just yet, but as the 2020 race heats up, this debate is far from over.
53 thoughts on “Bronx Cheer for Amazon in Queens (February 25)”
http://ponlinecialisk.com/ – buy cheap cialis online
I savour, cause I discovered exactly what I used to be taking a look for.
You’ve ended my four day lengthy hunt! God Bless you man.
Have a great day. Bye 0mniartist asmr
Having read this I believed it was rather informative.
I appreciate you finding the time and effort to put this content
together. I once again find myself spending a lot of
time both reading and leaving comments. But so what, it
was still worthwhile! asmr 0mniartist
Thank you for the auspicious writeup. It in truth was a amusement account it.
Look complicated to more brought agreeable from you!
By the way, how can we communicate? 0mniartist asmr
I am actually delighted to glance at this webpage posts which carries
tons of helpful facts, thanks for providing such statistics.
Aw, this was a really good post. Taking a few minutes and
actual effort to create a really good article… but what can I say… I put things off a whole lot and don’t seem to get nearly anything done.
Fine way of telling, and nice post to take information on the
topic of my presentation focus, which i am going to deliver in college.
dating sites free no registration
get cash now
personal loans with bad credit
I used to be able to find good info from your articles.
Whoa! This blog looks just like my old one!
It’s on a completely different topic but it has pretty much the same page layout
and design. Excellent choice of colors!
Hey just wanted to give you a brief heads up and let you know a few of the pictures aren’t loading properly.
I’m not sure why but I think its a linking issue. I’ve tried
it in two different browsers and both show the same results.
Hello would you mind stating which blog platform you’re working with?
I’m going to start my own blog in the near future but I’m having a tough time deciding between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design seems different then most blogs and I’m looking for
something unique. P.S Apologies for getting off-topic
but I had to ask!
what is tinder , tinder date
browse tinder for free , what is tinder
It’s very easy to find out any topic on web as compared to
textbooks, as I found this article at this web site.
Hello to every body, it’s my first visit of this web site;
this website consists of awesome and actually good information designed for readers.
tinder website , how to use tinder
Hello there, I found your blog by the use of Google whilst looking for a related matter,
your web site came up, it looks great. I’ve bookmarked it
in my google bookmarks.
Hi there, just changed into alert to your blog
via Google, and located that it’s really informative. I am gonna be careful for
brussels. I’ll be grateful for those who continue this in future.
Numerous folks can be benefited from your writing. Cheers!
My partner and I stumbled over here coming
from a different web address and thought I might check things out.
I like what I see so now i’m following you. Look forward to looking
at your web page yet again.
Right now it seems like Expression Engine is
the top blogging platform out there right now.
(from what I’ve read) Is that what you’re using on your blog?
tinder sign up , tinder date
how to use tinder
tindr , how to use tinder
how to use tinder , how to use tinder
Great post. I used to be checking constantly this blog
and I am inspired! Extremely useful information specifically the last section :
) I care for such info a lot. I used to be seeking this certain info for a very
lengthy time. Thanks and good luck. scoliosis
I like the helpful information you provide to your articles.
I’ll bookmark your blog and check once more here frequently.
I’m slightly certain I’ll learn many new stuff
right right here! Good luck for the next! scoliosis
This is a great tip particularly to those new to the blogosphere.
Short but very precise info… Thank you for sharing this one.
A must read article! scoliosis
My spouse and I stumbled over here by a different page and thought I may as well check things out.
I like what I see so i am just following you.
Look forward to checking out your web page repeatedly.
dating sites https://785days.tumblr.com/
free dating sites
Wow, that’s what I was searching for, what a material!
present here at this webpage, thanks admin of this web site.
free dating sites
I got this web site from my pal who told me regarding this
web site and at the moment this time I am visiting
this website and reading very informative content here.
We are a bunch of volunteers and starting a brand new scheme in our community.
Your website offered us with valuable info to work on. You’ve performed an impressive process and our whole
community can be thankful to you.
Hi there, I check your blogs on a regular basis.
Your humoristic style is awesome, keep doing what you’re doing!
Every weekend i used to pay a visit this web page, for the reason that i wish for
enjoyment, for the reason that this this site conations really good funny material too.
Its like you read my thoughts! You seem to grasp a lot approximately this,
like you wrote the e-book in it or something. I think that you just
can do with a few p.c. to power the message house a bit,
however other than that, that is wonderful blog.
An excellent read. I’ll definitely be back.
Great post. I was checking constantly this weblog and I am impressed!
Extremely helpful information specially the final part 🙂 I take care of such information a lot.
I was seeking this certain info for a very long time.
Thanks and good luck.
Pingback: free online anime dating simulation games
Heya i am for the first time here. I found this board and I
find It really useful & it helped me out much. I hope to
give something back and help others like you aided me.
Greetings! Very helpful advice within this article! It’s the little changes that make the biggest changes.
Thanks a lot for sharing!
Great, thanks for sharing this post.Really looking forward to read more. Awesome.
Uffxqk – cheapest ed pills Unxljk
a primera vista 1b pg.46 realidades 2 book pdf Breaking In French Dvdrip 2018 Gratuitement the thousand autumns of jacob de zoet book club questions
NumГ©ro De TГ©lГ©phone De Casino CharbonniГЁre Centre Commercial Casino Au Muy Bas Rhin Casino
Roulette Casino Billets 500 Accept S Cinema Lavelanet Casino G Ant Casino Bazeilles Catalogues
single chat sites
best dating sites
does viagra work the first time? viagra dapoxetine – online viagra trusted
viagra alternatives india natural viagra alternatives medical – viagra and lisinopril
india pharmacy that takes mastercard for viagra is sildenafil as good as viagra? – walgreens over the counter viagra
gay females dating site
los angeles gay dating sites
gay male dating listings
viagra sample viagra 50 mg – viagra in budapest
I know this web page offers quality dependent content
and extra data, is there any other web site which offers these kinds of stuff in quality?
I’m really enjoying the design and layout of your website.
It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a
designer to create your theme? Fantastic work!
dating a gay latino
gay dating tv show
adam gay dating site
dating gay senior
dating world gay
gay furry or furries dating