Corporate tax breaks can backfire — as New York City just found out

Corporate tax breaks can backfire - as New York City just found out

Corporate tax breaks can backfire — as New York City just found out

People have been grieving that everything including basic amenities is being overpriced in New York City. Along with this the additional cost of ravishing a heavy technology that is going to establish its pillars in the city. On Thursday Amazon had declared that it was opting out of its plans to set up a new headquarters in New York City, complaining that state and local politicians “had opposed our presence and will not work with us.” Back in November Amazon had promised that it would construct a locality for 25,000 employees, in the Long Island City neighborhood of Queens, fueled $3 billion in the state. The company with a lot of disappointment had stated that:

“After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens.”

A large number of protestors had added that this project would lead to overpopulation, suffocation in this area and add to a severe increase in housing prices. The entire blame was put on the head of politicians who were against the setting up of the company and critical of city and state leaders for allocating heavy tax subsidies to the company.

“For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term.”

Andrew Cuomo, New York Gov who had been an involved person in the Amazon deal, expressed his infuriation that “a small group of politicians” put their own “narrow interests above their community.”

The governor had also said that the Amazon decision would prove costly to “the state’s economic future and the best interests of the people of this state.”

During this period of mixed views the City Council Speaker, Corey Johnson aimed his rage at Amazon saying New York rejects “vulture capitalism.”

Johnson had also mentioned in a statement that:

“I look forward to working with companies that understand that if you’re willing to engage with New Yorkers and work through challenging issues. I hope this is the start of a conversation about vulture capitalism and where our tax dollars are best spent.”

Amazon’s idea of splitting it between New York City and the Virginia suburbs of Washington D.C was not a good idea.

An economics professor at the University of Georgia, Jeffrey Dorfman had said that “The price was too high. I think local people were right to complain,”. “Companies don’t need these incentives — they’re not deciding based on the incentives. They’re deciding where to go and then conning the politicians out of a whole lot of money.”

Tax policy experts said that this deal with Amazon was overpriced compared to the other deals companies made with New York City.

About the Author /

Mary Edwards got her starts as a news writer from our FinanceNews.Global team. After graduation, she joined our team and currently she writes news articles for business, economy, finance, banking and much more.

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