Big Incentive Package Grew Bigger Over Time

“Looking at the opposition and the timeline we decided we don’t want to work in this environment in the long term,” Jodi Seth, the head of policy communications for Amazon, told NBC News.

This could be a turning point for corporate-civic relations. It will surely change how companies think about doing business in certain states and cities. It’s also likely to make political leaders — especially in Democratic regions — reconsider offering tax incentives to lure business. (One big question here: Should states and cities be allowed to offer subsidies to business in the first place?)

It’s also a clear sign that leftist views are gaining traction. The news is a short-term win for progressive politicians like Representative Alexandria Ocasio-Cortez, who are championing what they say are socialist messages. (Ms. Ocasio-Cortez appeared to revel in the decision on Twitter, saying that “anything is possible.”) But in the longer term, those lawmakers may face a backlash if the loss of those 25,000 jobs in Long Island City hurts the local economy.

And it raises questions about the wider understanding of finance. “N.Y.C. wasn’t handing cash to Amazon. It was an incentive program based on job creation, producing tax revenue,” Andrew tweeted. “There isn’t a $3 billion pile of money that can now be spent on subways or education.”

More: The news came as a shock even to some of the labor groups that opposed the plans. Here’s what people are saying about the decision in New York City. Real-estate brokers are in despair. And tech could >keep gaining ground in the city regardless.

Source : https://www.nytimes.com/2019/02/15/business/dealbook/amazon-new-york.html

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