Amazon

It's Good for Everyone that the Amazon-New York Deal Fell Through

Watch Nick Gillespie discuss this on Fox Business's Kennedy show tonight at 9.30 P.M. E.T.

|

Updated 2/19: Here's the clip from last night's appearance on Kennedy.

I'll be on the Kennedy show on Fox Business tonight around 9:30 P.M. (Eastern time), talking about whether the recently ditched Amazon deal was good or bad for New York, taxpayers, potential employers, and others. Go here for more information on the show.

Amazon would have received around $3 billion in tax incentives and other subsidies for building a giant new complex in Long Island City and adding a widely reported 25,000 jobs that paid six figures. Backers of the plan said that the deal would generate about $27 billion in new tax revenue over the next 20 years.

After encountering anger and resistance from a wide array of local politicians and activists, including Rep. Alexandria Ocasio-Cortez (D–N.Y.), Amazon pulled out as progressives mostly cheered. They wanted assurances that Amazon would allow workers to unionize, build affordable housing, and kick in for a wide variety of other infrastructure- and community-related initiatives. New York Mayor Bill de Blasio, who helped broker the deal with Gov. Mario Cuomo, published an angry op-ed in The New York Times, saying Amazon's withdrawal underscores "what the concentration of power in the hands of huge corporations leaves in its wake." De Blasio is particularly stung because, like the most-vocal critics of the plan, he considers himself a "lifelong progressive." And now he has nothing to show for it other than what is usually considered the highest combined state-and-local tax burden in the country.

Amazon's pullout should be considered a blessing in disguise, and an opportunity for New York (city and state) to change the way it does business. The entire deal smacks of crony capitalism, in which politically connected business get to set preferential rules for themselves. Such deals rarely work out well for taxpayers, whether we're talking about car companies or sports teams. And even if they do, it's wrong for government to pick winners and losers in a free-market economy. Rather than trying to create carve-outs for particular companies or business sectors (such as the film industry), de Blasio and Cuomo would be far better off working to reduce the tax and regulatory burdens for all residents. As it stands, Cuomo is scrambling to cover a stunning, unexpected revenue drop of $2.8 billion this fiscal year. New federal tax legislation that caps deductions for state and local taxes at $10,000 has led to a massive exodus of New Yorkers for places elsewhere. When Cuomo took office as governor in 2011, he said that New York had to reduce taxes and become more business-friendly to compete with other parts of the country. Instead of working toward such goals, he has instead pushed programs such as Start-Up NY, which spent $28 million to create "maybe" 76 jobs, shut down fracking, and caved to public employees over benefits and pay.

Rather than huffing and puffing over the loss of Amazon, which New York City will survive easily, Cuomo and de Blasio should take a step back and ponder the way that Cuomo in particular talked at the beginning of his tenure.

"We spend too much money," he said. "You cannot spend more money than you make in life."…

Cuomo said that families across the country have been doing more with less during the recession.

"It's time that government goes through the same exercise," he said.

Pledging to lead by example, Cuomo said he would reduce state agency spending by 10 percent, including wage, salary and pension savings. He said he would lay off 9,800 workers only under a "worst-case scenario."

Cuomo also said he would look to eliminate 3,500 prison beds and reform the juvenile justice system.

With New York the highest-taxed state in the nation, Cuomo said tough decisions need to be made now to ensure the state's future.

"On one side, you have the road to ruin," he said. "On the other side, you have the road to success."

Creating a sustainable level of taxation, regulation, and certainty will go much, much further toward economic progress than trying to woo business with cronyist giveaways.

Related: "Desperate Mayors Compete for Amazon HQ2"

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

60 responses to “It's Good for Everyone that the Amazon-New York Deal Fell Through

  1. Dumb and Dumber.

    1. Their TDS really has gotten out of control

      1. See http://www.realclearmarkets.co…..03627.html to read a rag-on-libertarians take on this.

        I do not know WHAT to think about it all… Maybe ANY way to dodge a tax dollar is GOOD! ANY dollar paid to Government Almighty, that does not absolutely HAVE to be paid, is like giving another quart of whiskey to a booze addict!

        I dunno, just check out the link I gave, I am halfway through reading it…

    2. I am getting $100 to $130 consistently by wearing down facebook. i was jobless 2 years earlier , however now i have a really extraordinary occupation with which i make my own specific pay and that is adequate for me to meet my expences. I am really appreciative to God and my director. In case you have to make your life straightforward with this pay like me , you just mark on facebook and Click on big button thank you?

      c?h?e?c?k t?h?i?s l?i?n-k —->> http://www.payshd.com

    3. I am getting $100 to $130 consistently by wearing down facebook. i was jobless 2 years earlier , however now i have a really extraordinary occupation with which i make my own specific pay and that is adequate for me to meet my expences. I am really appreciative to God and my director. In case you have to make your life straightforward with this pay like me , you just mark on facebook and Click on big button thank you?

      c?h?e?c?k t?h?i?s l?i?n-k —->> http://www.payshd.com

  2. “Amazon would have received around $3 billion in tax incentives and other subsidies for building a giant new complex in Long Island City and adding a widely reported 25,000 jobs that paid six figures. Backers of the plan said that the deal would generate about $27 billion in new tax revenue over the next 20 years.”

    No, the people who would have benefited from the presence of a company that would have generated so much salary and business for the local economy that it would have let New York City skim $27 billion in tax revenue off the top are not better off because the Amazon deal feel through. Talk about making a silk purse!

    Oh, and companies negotiating discounts from other companies because they bring huge benefits with scale that other companies can’t match isn’t crony capitalism–and cities being forced to compete with each other for the presence of lucrative companies for the local economy isn’t crony capitalism either.

    Cities competing with each other for our business is actually the anarcho-capitalist dream.

    In short, when it became clear that New York City’s bid wasn’t competitive compared to New York City’s competitors, Amazon wizened up–and New York City’s failure to be competitive is costing the people of New York City $27 billion in tax revenue. Jesus on Triscuit, why would that be good news for New York City’s taxpayers–much less local retailers, local real estate owners, local restaurants, and local businesses?

    1. Yeah, I’m not really seeing the good for everyone here.

      1. Positives
        1: Rule of Law benefits. The same laws apply to everyone
        2: The work needs to be done. They will set up somewhere, so employment at a national level is a wash.
        3: However, the company will go to whichever local economy supports Amazon best. This means availability of employees and distribution lines. Unlike the New York, which was wherever taxes were best. Therefore, the economy benefits from greater efficiency.

        It’s not good for New Yorkers who did stand to benefit from the Nash equilibrium of Amazon coming there, but it’s better for us all if we did not do these sorts of things.

        1. “Rule of Law benefits. The same laws apply to everyone”

          And the trees were all made equal
          by hatchet, axe, and saw!

          We’re not talking about Fifth Amendment rights here. If the city buys a sculpture from one artist, does that mean they have to buy sculptures from all the other artists, too? And do they have to pay them all the same–no matter how shitty the work–because, you know, we need the same laws to apply to everyone?

          I don’t think so.

          Come to think of it, aren’t we usually complaining about mandatory sentencing around here? Why should different people in different circumstances all be treated the same?

          You know who gets treated the same? City employees because of unions. Sorry, we can’t fire that cop because, you know, we have to treat all our employees the same! Anybody on the street who gets indicted for a crime should be treated the same–as if they were Jeff Bezos. They should have their rights respected, the right to a jury, the right to remain silent, the right to counsel, etc., etc. That’s equality before the law. Reaming taxpayers for $27 billion because the city couldn’t bring themselves to make a special deal in special circumstances isn’t equality before the law.

          1. Equating the tax rates with employment is wrong. Taxes are mandatory and across the board that should not depend on the behavior of the organization/person involved – truly fair. Hiring and salaries are individual decisions that should be based on value provided. Detectives are paid differently than janitors since they provide different value. Nick is right to scold NY and other places for having high rates that do not compete with other states and then offering bargains to selected companies. That really is crony capitalism, or as it is sometimes called, fascism.

      2. You must not live in Nashville

  3. Thanks for the heads up about your Kennedy appearance. I try to catch it every night, glad that you’ll be on.

    1. Kennedy is MINE, Jeff, got it? I’ve had a crush on her since she was a VJ on MTV.
      I SAW HER FIRST!

      1. Don’t worry Denver, Little Jeffy’s testicles have yet to drop. If they even exist.

  4. This is all great news for Dallas, which is a great location for Amazon to do business. And they won’t need to build affordable housing because developers will do it for them.

  5. The charge of crony capitalism has gotten so bizarre from my fellow libertarians lately, I wonder if some of them might oppose Venezuela privatizing it’s nationalized industries–because crony capitalism!!! You can’t privatize because then the government is picking winners and losers. Opposing privatization in the name of capitalism is insane, and opposing tax cuts in the name of capitalism is insane–especially in absurd tax hellhole like New York City.

    It’s almost like an equality of outcome argument from a progressive. No, it’s not fair if you can afford to pay more for college than other kids. Everybody has to be treated the same. It isn’t fair if Amazon can negotiate a better price than the mom and pop down the street because the mom and pop down the street doesn’t have as much to offer?! I remember when we used to be about letting Wal*Mart drive mom and pop out of business and into retirement.

    There is a system where government bureaucrats treat everyone the same regardless of their scale or comparative advantages. That system is called central planning. Alexandria Ocasio-Cortez is celebrating the failure of New York City to bring so much business to a district on the border of her district because she’s a socialist, central planning retard, and the New Yorkers who voted for her because they wanted to give Trump the finger are waking up to that fact right about now.

    1. P.S. Because we gave tax incentives to Amazon might be an excellent reason to cut taxes for everybody else. Because everybody is being treated the same is a good reason not to cut taxes for anyone.

    2. You can’t privatize because then the government is picking winners and losers.

      Public auction?

      1. I mean, seriously, public auctions by government are probably as easy to rigged as anything. You’re still talking about entities who can afford to buy the assets negotiating with the people in charge of selling them before those shares go to auction.

        Meanwhile, what do the people of Venezuela think? Do they think Venezuela’s oil related assets should be sold to the highest bidder–even if they’re foreigners? Just because they don’t want Maduro running everything doesn’t mean they want their assets being sold off to foreigners!

        And who has money to buy things in Venezuela right now? People who were associated with the last government, right–especially those in the military and police? Why should those crooks get the nation’s assets, just because they have money that they took through robbery, embezzlement, and bribes–while average Venezuelans were suffering from malnutrition?

      2. We’ve seen this all before. Trying to transfer nationalized assets to private hands when transitioning from a socialist system pretty much always ends up in bureaucrats making arbitrary decisions and well connected players running off with the assets.

        There have been times when they tried to, say, give every employee equal shares in the company they work for, but even then, management typically ends up either getting all the shares back (especially when people are hungry) or requiring them back as a function of some outsider coming in and making whatever investments are necessary to get the industry back up and running.

        Venezuela’s industries are horribly mismanaged, and they, no doubt, require large investments to get them up and profitable again. Whether it’s equity investors sinking money into the operation or banks making loans, they will require that the assets in question are bought out with their equity investment and/or used as collateral in a loan. What will a bank repossess if they don’t get their money back when your plan to privatize fails to generate enough profits?

        1. Moral of the story: some ways of privatizing industry are a little better than others, and some industries have an easier time of it than others–but getting those assets into private hands is more important than making absolutely sure that no assets are privatized to cronies. The assets will almost certainly go to cronies, eventually, when they’re privatized, and capitalism is still better than socialism anyway.

          Whining about crony capitalism is a common refrain coming from socialists who oppose privatization in those circumstances. The problems they’re whining about were ever present from the time those assets were nationalized. if the solutions were easy, everyone would do it. How hard do the problems have to get before you take the steps to make things start getting better? The people of Venezuela are already suffering from malnutrition. Their savings and assets are completely wiped out. How bad does it have to get? Dead bodies piling up in the streets from starvation? At some point, you’ll need to privatize, and that will involve bureaucrats and cronies almost as sure as the sun will rise tomorrow.

          1. Just because bureaucrats make bad deals is no reason not to have an auction.

  6. Creating a sustainable level of taxation, regulation, and certainty will go much, much further toward economic progress than trying to woo business with cronyist giveaways.

    The most important obstacle to economic progress is the Russian intelligence asset in the White House. Paul Krugman predicted Drumpf would wreck the world economy and every day we get more confirmation he was right.

    #DrumpfRecession
    #UnbanPalinsButtplug

    1. Aren’t you done spamming? Are you in the school of where you repeat it enuff, people will believe it?

      1. It’s a one-trick ‘parody’ account, and that pony got a broken leg some time in the past.

        1. OBL makes me smile every day. The ridiculous open border welfare state utopia that leftists come here to push is stupid beyond belief, and the people who believe in fairy tales need to get their daily reminder that their ideas are shit

          1. Plus he’s mocking the “libertarians” who write for Reason and back Democrats because they have the “right” position on abortion and immigration, when they’re nearly 100% anti-freedom.

    2. Remember, quality over quantity, dude.

    3. Open Brain Leaking Out above can’t help but prate and bloviate on that which he knows ZERO bout. As a (barely) grade school graduate, he thinks calling Trump Drumpf is proof of his high level of wit, when in fact is is proof of the opposite. Sorry, you lose, and losing will become the norm for fools like you, a.k.a., Democrats.

      1. r/atetheonion

  7. I’ll be on the Kennedy show on Fox Business tonight around 9:30 P.M. (Eastern time)…

    Not cool. Don’t give your approximate appearance time. Make readers watch the entire show. Help a girl out.

  8. A mutual cluster fuck.

    But still delicious to see how stupid Ocassional-Cortex and her comrades can get. I hope one of them floats the idea of banning Amazon deliveries in Queens.

    1. I’m pretty happy to see Amazon doing a lot of their own deliveries after Trump bashed them for not paying enough to the USPS who sucks ass. I’m really happy because I don’t have to worry about boxes getting smashed into my mailbox or thrown in the mulch or left in the driveway .

  9. In a stunning display of new-speak:

    “…New York Mayor Bill de Blasio, […] saying Amazon’s withdrawal underscores “what the concentration of power in the hands of huge corporations leaves in its wake.”…”

    Yeah, the power to take a look at the extortion demands and decide to say “no”.
    I don’t know about the arithmetic of the original plan, but unlike a stadium, Amazon was certainly going to generate quite a bit of revenue. But once that camel’s nose was in the tent (‘unionize or else!’), it’s all downhill…

  10. …it’s wrong for government to pick winners and losers in a free-market economy.

    That sounds cool, when did we get a free-market economy?

    1. Make Amazon pay their fair share? I guess that’s what the pro-freedom crowd wants these days.

  11. Okay, Nick is up next. Let’s hope The Jacket makes him look good.

  12. And I’m not a huge fan of the legalized extortion associated with corporations playing one local government against another in pursuit of the most lucrative tax advantages.

    1. “And I’m not a huge fan of the legalized extortion associated with corporations playing one local government against another in pursuit of the most lucrative tax advantages.”

      ex?tor?tion
      [ik?st?rSH(?)n]
      NOUN
      “the practice of obtaining something, especially money, through force or threats.”
      You wouldn’t look as stupid as you often do if you’d recognize that words have meaning other than what lefty ignoramuses imagine them to be.

      1. Sorry Sevo. Let me rephrase:

        THREE CHEERS FOR AMAZON FOR REFUSING TO CAVE TO THE DEMANDS OF THE LEFT!

        better?

        1. So why did you claim the opposite in your first post? Aren’t those goal posts heavy?

          1. sigh

            1. Oh, how pathetic.

          2. Because he’s garbage Sevo.

  13. The economy is rigged.

    http://fee.org/articles/amazon…..ple-think/

  14. I’m not do sure that Bezos didn’t sense some weakness in retail and decided he didn’t want to do the investment right now after all and used politics as an excuse. It’s not like he didn’t know NYC was derptown when he made the deal.

  15. . . . [Cuomo] caved to public employees over benefits and pay . . .
    This is a comment on just on one aspect of what was discussed here. But this one aspect is one of the reasons that many of the more progressives state and city governments are having financial problems with public employees retirement. As Cuomo has caved and promised more that the state (also other progressive states and cities and even school districts) can deliver in most cases this does not fall upon the one who promised it but on someone that follows and may not have a part in the agreement but it falls on them to meet the obligation of these agreements. Yes, in part these agreements may have been made in a quid pro quo, in other words we (politicians) will give you (unions, etc) a great wage and benefit plan and retirement plan for your votes (NEVER SAID IN WORDS THOUGH) but it keeps the politicians in office and the workers with a great benefits.
    Another area of this article the states with high state and local taxes are being subsidized by states with lower state and local taxes by these low taxes states don’t have as much federal tax deduction as the higher taxes have there fore pay a higher portion of income in federal income taxes. Now that these taxes are not fully deductible on federal taxes people are leaving these higher states.

  16. Cuomo said tough decisions need to be made now to ensure the state’s future.

    So, Cuomo’s thinking of running for president?

    1. He certainly is not thinking of resigning in favor of someone more competent.

  17. Amazon pulling out was not a good deal for New York at all. If the local crimelords in the city government agree to steal 3 billion less from them in exchange for bringing 25,000 jobs, that’s a win for freedom.

    I thought NY was a dumb choice to begin with though. Should have gone to Pittsburgh or St. Louis or somewhere cheaper.

  18. I am making over $7k a month working part time. I kept hearing other people say to me how much money they can make connected so I decided to look into it. Well, it was all true and has totally changed my existence. This is what I do?. http://www.Mesalary.com

  19. Start working at home with Google! It’s by-far the best job I’ve had. Last Wednesday I got a brand new BMW since getting a check for $6474 this – 4 weeks past. I began this 8-months ago and immediately was bringing home at least $77 per hour. I work through this link, go to tech tab for work detail.

    +_+_+_+_+_+_+_+_+…………….. http://www.Pay-Buzz.com

  20. Blowhard crooks like De Blasio and Ocasio don’t give a SHIT about those they “represent” They care only about themselves and the money that comes from unions, which unions then conspire to force companies to pay a worker $50,000 annually to push a button on a machine. Take a look at Detroit, New Yorkers, as if De Bloviate and Ocaiso get their way, you’ll be them “New Detroit”.

  21. Amazon was not the issue. NYC has been losing business and individuals due to their high tax policies. If Amazon had stayed those policies would continue to drive others away. Cut taxes across the board, fairly instead of just for the big politically connected and stop the emigration.
    Much like a damn with a leak in it they choose to try and fill it faster to keep the water level up but the long term drain would continue unabated. A losing proposition in the long run.

  22. I get paid over $180 per hour working from home with 2 kids at home. I just got paid $ 8550 in my previous month It Sounds unbelievable but you wont forgive yourself if you don’t check it…. http://www.Mesalary.com

  23. Quick financial cash offer Apply now no collateral required just 2% interest rate, both long and short term cash of all amounts and currencies I’ll advise you can contact us via email at
    abdullahibrahimlender@gmail.com
    whatspp +917738214856
    Mr Abdullah

Please to post comments

Comments are closed.