Quote:
Originally Posted by GGG
Do you agree that Amazon would have built headquarters somewhere in the US without subsidies? I do. Therefore these jobs moved from one jurisdiction (the jurisdiction amazon builds it in without any subsidy) to another as a result of tax breaks.
This subsidy didn’t create any new jobs that wouldn’t have existed somewhere in the US. It didn’t create any new tax base that wouldn’t have existed somewhere in the US. It assured that Virgina would be the spot this would occur.
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It created a new tax base in Virginia, period, and that is worth many times as much as 600 million dollars.
There are wildly different local tax rates, state tax rates, state income tax rates, property taxes across the various states and localities in the country. Would you be fine then if they just picked the lowest taxed state/county in the country. It would have probably saved them a hell of a lot more than 600 million.
Basically, they are investing enough in the state that will be very lucrative to the state, that they can negotiate some off of their tax rate. It's not limited to giant companies. Very small, small, and medium companies around here get local and state grants and tax breaks all the time to invest in new ventures.