Friday, November 16, 2018

Amazon

This is a summary of what Pittsburgh and Pennsylvania offered Amazon to induce them to come to Pittsburgh.

Within the bid, there were $556 million in local incentives for land and infrastructure.
The state incentives included up to $4.5 billion in performance-based grant funding and $100 million toward state transportation improvements, according to Wolf's office.
"In collaboration with the Commonwealth of Pennsylvania, Allegheny County, the City of Pittsburgh and Pittsburgh Public Schools, we are prepared to offer Amazon a package valued at $4 billion over 25 years," the bid read.
That $4 billion broke down as follows:
• $637 million in capital to reduce initial occupancy costs, such as land value, infrastructure and transit
• $1.3 billion in performance based grants as Amazon creates jobs
• $2.1 billion in the way of forging Pittsburgh's future investments. These investments would improve fund pre-K, K-12 and workforce development programs and ensure affordable housing and transportation and infrastructure.
Sites in Allegheny County offered to Amazon at no cost included:
• Hazelwood Green
• The former Civic Arena Site
• 44 acres in the Strip District offered by Oxford Development
• Carrie Furnace
• 152 acres owned by the Allegheny County Airport Authority near Pittsburgh International Airport
In addition to those five sites, the bid identified 30 additional sites that Amazon could use for more office space, logistics, fulfillment, research and other uses.

I have been hearing for years that taxes do not have a negative effect on business or its decisions. Yet here are famous tax and spend politicians giving tax breaks to a business to influence its decisions. How come?

And why would a nation that purports to value free enterprise allow such overt bribery with public funds?

No comments: