Amazon’s cynical city shakedown

TheWeek.com

“American cities are tripping over each other to woo one of the most valuable companies on Earth,” said Jeff Spross. Amazon announced last week that it was hunting for the perfect location for a second headquarters, presenting its suitors with a “long and exacting” wish list. The company’s ideal second home must have “a population of at least 1 million, access to airports, good mass transit, encouraging job growth, a well-educated labor force, nearby universities, and available land.” On top of that, the company expects the lucky location to “sweeten the pot” with generous tax incentives and relocation subsidies. So far, New York City, Boston, Dallas, Chicago,

Houston, St. Louis, and Miami have thrown their hats into the ring, and “it’s no wonder.” Amazon’s new HQ is expected to employ 50,000 people, with six-figure salaries on average. Yet “there is something cynical about this whole display.” It makes sense that Amazon wants robust transit and internet infrastructure; cities should want that, too. But the more money local leaders spend on tax giveaways to court wealthy firms like Amazon, the less they have to spend on those same public services. Amazon has already received $1 billion in subsidies and tax breaks since 2014. The coming bidding war just “might encourage local governments to fiscally self-immolate.”