mas24 Loc: Southern CA

And the Shares in the Stock Market would have risen considerably too, in future years.

Cykdelic Loc: Now outside of Chiraq & Santa Fe, NM

Jerry....THERE WAS NO PAYMENT!

The deal was tax BREAKS to the company, ie they get to NOT pay corporate taxes up to,the amount of $3 billion. The land is currently creating close to zero biz taxes and literally zero personal income taxes or individual sales taxes.

Cykdelic Loc: Now outside of Chiraq & Santa Fe, NM

So? It’s a Corp so you can only look at 5 year, cumulative rolling numbers as corps have deferred taxes and carry forwards/backs.

elad Loc: Arizona

[quote=Cykdelic]It’s an interesting model IF one does the math and the company follows through.

Not so oddly, AOC appears to be so ignorant in both taxation and the laws she is on record as saying that NY can now use that money to give things to current New Yorkers (let me amend that.....it’s actual stupidity).

Excellent analysis, "Cykdelic" everyone should read what you wrote. I'll just add, There’s a reason the old saying, “be careful what you wish for,” is an old saying. Rep. Alexandria Ocasio-Cortez may wind up learning that the hard way. In the wake of Amazon’s decision last year to plant one of its new headquarters in New York City, and with it 25,000 jobs in exchange for generous tax breaks, Ocasio-Cortez did what any good socialist would do. She slammed the deal.

At the time, it seemed like a pretty safe bet. The jobs were already coming, so why not take the opportunity to stick your finger in the eye of the big, mean, nasty corporation? Today, all that changed. She fished what she wished and Amazon decided not to bring tens of thousands of jobs to New York City after all. Today, her effective opposition to the deal is a much different story, one in which she has to defend creating less opportunity for working New Yorkers.

DebAnn Loc: Toronto

The ability to attract a huge corporation to a city is of major importance to local economies. But, cities can't expect such corporations to move in without some give and take on both sides. Right now in Toronto, one of Google's sister companies is pushing a development of our Port Lands, where they will build the underground infrastructure and finance a publicly-owned transit line. In return, the company wants to recoup its investment and make a "modest" profit from a share of developer fees, increased property taxes and increased land value that come from its investment. Politicians are trying to have the public believe that they knew nothing of the plans until they were revealed in the local newspaper a couple of days ago. The headline the next day was "Politicians react with shock, anger." Politicians must think we are all stupid! Of course Google isn't going to create a mini city on underused land, creating thousands of jobs and increasing the local economy without some kind of handsome return on their investment. Why would they? By the way, Toronto is willing to revisit talks with Amazon about having them build their headquarters here - but apparently our first proposal stands - no extra incentives!

sirlensalot Loc: Arizona

It appears that the taxes would have become the burden of the employees, not the company. Union members receive higher wages because they have negotiating power and a degree of control over working conditions. Like them or not, they helped raise the bar for all of us. There is room for both union and non-union in this country. It is not the unions that force an employee to join, it is the employee. If closed shop rules still exist, it is still the employee who gets to choose if that is the job / company for him or her.
TV news reported that the average Amazon salary in NYC would have been $150K per year. We'll never know. 25,000 employees X 150,000 per employee minus city, state, federal taxes. How long to recover $3B in tax breaks?
What is fact however is that despite their state tax breaks, Amazon paid $0 federal tax on $11.2B. Hard to say if NYC made the best choice, but maybe they did. Gutsy move though.

Quinn 4

Ok, fight over taxes go on. This whole question about making jobs for people. Who are those people? People of New York City? People from other parts of the country? Now New York City has large pool of people who are train in any kind of job, you name it you will find them. So what is the reason for outside people moving in?

wrangler5 Loc: Missouri

New York is famous for having a nearly endless line of politicians and power brokers who must be paid off, one way or another but continuously, for any business to get virtually anything done. The NYC environment offers some unique opportunities and benefits for businesses, in the way of finance, transportation and human resources in abundance, which is why businesses are willing to pay the (let's be honest and call 'em what they functionally are) bribes. But it's always a balancing act - whether the benefits are worth the bribes it will take to get 'em.

I saw someplace that after Amazon made its basic deal with the governor, other state and local operators started showing up with their own lists of what THEY were going to need if Amazon were actually going to be able to open and do business. And at some point the calculus for Amazon locating there flipped from a net positive to a net negative value. Like any good business, Amazon decided not to go through with the deal.

As for Amazon (or any separate business entity for that matter) "not paying taxes," remember that businesses are taxed on net profits over time, NOT on gross receipts in a single year (which is basically what individuals are taxed on, with "exemptions" and "deductions" graciously allowed by legislatures.) Even politicians realize that business profits - and losses - can fluctuate over time, which is why businesses are allowed to "carry back" and "carry forward" one year's losses to earlier or later tax years to offset profits in those years. (Carry-backs may have been limited or eliminated in the recent tax changes.) Carrying forward last year's loss, for example, to this year when you otherwise would have had a net profit, may mean that this year you would "pay no taxes." That is NOT a "loophole," or "cheating", or any of the other pejoratives that the tax-illerati throw around at businesses.

Architect1776 Loc: In my mind

You are confusing the stupid democrats here with all this intelligent talk and facts.
They live in a world of fantasy and fake news.
democrats remind me of the prewar Germans listening to Hitler and Goering.

StanMac Loc: Tennessee

Wait a minute . .. the Supreme Court ruled that corporations are basically equivalent to living breathing people, so why should they be entitled to privileges real live breathing people can’t get? Something is screwy here. And I think it’s us that are getting screwed!

Stan

mas24 Loc: Southern CA

Actually, it was not AOC who killed this deal with Amazon. It was the State Legislators, who aligned with local NYC business leaders. There was one key State Legislator who led the fight. While AOC wanted full credit for killing this deal. She was only in agreement with the State Legislators and NYC business leaders. This was a State issue, not a federal one. That's why the mayor of NYC, and Governor Cuomo were very disappointed. Of course, AOC loved the media attention she received on this matter. As a NYC Congresswoman.

Architect1776 Loc: In my mind

Then why do the congressmen get special exemptions from the wonderful laws they pass like not having to be subjected to obummer care as a recent example?

Jim70 Loc: Delaware

I really enjoyed hearing how AOC was proposing that NBYC spend the tax break that isn't going to happen.

Architect1776 Loc: In my mind

Problem is ALL the democrats including those on this site believe her.

Beemer

BlueMore, Thank you for your on point comments. We cannot continue to be held hostage for jobs that vaporize and monumental stadia that never produce the benefits promised.