North Carolina lawmakers and the business community have been watching Amazon’s search for a second headquarters with bated breath. Today, Amazon announced its 20 finalist locations, which include Raleigh.
Here is the list of finalists: Atlanta; Austin; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Maryland.; Nashville; Newark; New York; Northern Virginia; Philadelphia; Pittsburgh; Raleigh; Toronto; Washington, D.C.
Anyone who believes in the morality of a free market should view this announcement with a healthy dose of dread. Amazon was very clear in its Request for Proposals (RFP) that financial incentives from state and local governments will be “significant factors in the decision-making process.” With that announcement in the RFP, Amazon created a national bribing war among states and cities.
As an example, Chicago has offered Amazon $1.32 billion in tax credits. So, what will North Carolina have to offer?
In his first year in office, Governor Roy Cooper inked incentive deals totaling $185 million, according to the Raleigh News & Observer. Of course, that total pales in comparison to the $1.5 billion the Cooper administration offered for a failed bid to land a joint Toyota-Mazda automotive plant.
If Governor Cooper and Commerce Secretary Tony Copeland were willing to offer $1.5 billion in taxpayer dollars for 4,000 automotive workers in Randolph County, what will they offer Amazon for 50,000 jobs in Raleigh?
I agree that lower tax burdens are good for businesses and help create prosperity; however, these incentive programs only reduce the tax burden for select companies and keep the overall business tax rate artificially high. If across-the-board state government spending is not reduced by the amount of the incentives, then the corporate tax rate may have to increase for all North Carolina businesses. That is not fair tax policy and proves that incentives are simply welfare to politically-connected corporations.
If the Cooper administration wants to create jobs, then state government should continue to widen the tax base by eliminating incentive programs and cut overall tax rates instead of bribing companies to move to the Tar Heel State.
George Zeller says
If I were Amazon…I’d build in Toronto.
And this was?
Donald Bryson says
You’ll find several examples of Civitas being critical of lawmakers on both sides of the aisle, including Governors Cooper and McCrory on this issue.
You’ll also be interested to see that a News & Observer reporter found that Governor Cooper has offered more in incentives in his first year, than Governor McCrory did (https://twitter.com/AndySpecht/status/948212107807526913).
Perhaps you should have stated these facts in your article. That would be responsible reporting. The people of North Carolina should know the facts. Omitting them, reeks of party propaganda. Who are you writing your article for, the People or the party??
Perhaps you should state the fact that you actually are Scott, lying about your identity.
You allow others to impersonate Scott. Perhaps you should find a moral conscience before attempting to lecture anyone.
Maybe it was “Jack” impersonating “Scott”?
You seem very confused.
I guess he will be Suzy next.It so easy to tell who it is.Its that same incoherent style.I am not a communist,but I want government running everything.Even Castro knew thats what communism is.
Brian,Scott or Jack lies about everything so we can’t expect him to tell the truth about who he is.