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As winners of the largest corporate prize in years – the Amazon's new headquarters – it was a pleasure for them, there was still a debate over the billions of dollars in offering incentives to attract the technology of the US quickly.
The new Amazon "HQ2" will invest around $ 5 billion and create 50,000 new jobs divided between the Island of Long Island area in New York and Crystal City, a community in Virginia across the Potomac River from the main the US homepage in Washington.
Officials in every community welcomed what they said would be a huge economic growth in Amazon to create jobs, new facilities and infrastructure, and that the plans would be positive for public coffins.
But adjudicators warned that tax incentives and deposits from state and local government – up to $ 3 billion in New York and $ 2.5 billion in Virginia – could be higher than the economic benefits of Amazon's investments.
It is common practice in the United States to find Amazon incentives – surrounded by some as a "Hunger Games" competition.
The Brookings Institute report, based on New York Times data, estimates approximately $ 90 billion annually in corporate promotion from state governments and local governments.
– Are incentives working? – –
Michael Farren, a researcher at the University of George Mason, a person who specializes in physical revival, has these inspirational types; making the difference in a company decision.
"Corporate reorganization decisions are made on the basis of things that have a deeper impact on the business base of the industry, as skilled workers," he said.
"So why do they do this? It's another way that politicians can not apply for the business."
Farren reported that Amazon could win even more likely tax benefits if it had exceeded Potomac into Maryland that gave a package of more than $ 8 billion worth, or chose the west of New York, Newark, where $ 7 billion was offered.
However, there is not a # 39; a contract for criticism from those who have a Amazon claim, need some of them; referred to as "corporate benefits."
"One of the wealthiest companies in history should not be financially supported by taxpayers while many of the New York families are struggling to complete on the heads, "said New York Senator, Kirsten Gillibrand, on Twitter.
Alexandria Ocasio-Cortez, an advanced candidate who was elected to Congress from a district that includes a part of the Queen, talk about similar concerns, saying, "We need to focus on good healthcare, living salaries, accessible rents.
Corporate that does not offer any of these things should be fulfilled or does not; believe. "
The item has been hitting the right, with the conservative economist Veronique de Rugy, Writing in the National Review: "I can not believe that I am saying this, but Ocasio-Cortez has a great degree of accuracy on this issue, and its incorrect conservation credentials. like this to Amazon and other companies that are very difficult to be damaging, simple and simple. "
Farren said that subsidies would have an impact on the economy and that urban cities should be able to; focus on improvements in education and infrastructure that offers attractive places to them; live and work instead of committing a particular company or business.
– & # 39; Dedicated taxpayers & # 39; – –
But Tom Stringer, a corporate landowner advisor with the BDO consultant firm, said that critics could Amazon contract to read good print.
"The two states are getting amazing things if things happen," Stringer told AFP.
Stringer said that the arrangements are organized as pay programs as you go, and "Amazon does not deliver it's not getting the benefits. Taxpayers are well protected. "
Despite this, the issue of public subsidies has made a more focused focus on things about Amazon and Foxconn, a Taiwan-based electronic company that is a created for Apple and other major companies and agree to build a factory in Wisconsin.
The $ 3 billion boost for Foxconn – expecting to grow to $ 4 billion – to create 13,000 jobs to subsidy of over $ 200,000 per work, compared to around $ 20,000 for work for Amazon.
Stringer said that the Foxconn service, named by President Donald Trump, was some of the "unusual" elements compared to Amazon.
"Foxconn has many political effects that are very different from what is being shown by Amazon," he said.
– Wisconsin boondoggle? – –
Wisconsin Walker Walker's Governor, the Foxconn contract, declined his election this month among concerns about rising costs and estimates for lower job creation.
Even some companies have begun recognizing problems with the public subsidy tradition.
Walt Disney Co sent a letter to the city of Anaheim, California, earlier this year trying to complete taxes, saying that they created "bad weather".
But Stringer argued that incentives are still "very important" as a way of identifying businesses and encouraging economic development.
"Everyone who laughs if they think incentives do not make a difference," he said.
Darrell West, who has been the leader of Brookings' regulatory checks, said that it is important (for practitioners) to be hard on discussions so that both sides can benefit from these issues. "
He also stated that companies like Amazon and Foxconn had clear business benefits due to the size of their investment. "
Amazon is getting a lot of inspiration for its new headquarters in New York and Virginia, Following a pattern of other companies that are looking for a tax break
Representative, Alexandria Ocasio-Cortez, an advanced advocate, and intelligent questioner to offers tax incentives to Amazon, and some supporters received support
Amazon agrees to build new headquarters in the neighborhood of Long Island City in the Queens Queens town of New York, seen here, and in Arlington, Virginia, after considering proposals from cities
Governor of Wisconsin Scott Walker re-elected the election after contracting a & # 39; billions in Foxconn's plant incentives based in Taiwan
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