Cities Should Stop Playing Amazon’s Game & Quit Offering Corporate Tax Incentives
New York City should count its blessings.
Amazon’s decision to walk away from its plan to build a new headquarters in Queens stunned city and state officials, who had promised US$3 billion in incentives in exchange for some 25,000 jobs. They had never questioned whether the promised jobs and economic stimulus would actually appear.
I have reviewed much evidence on the effectiveness of tax and other incentives. My conclusion: Incentives just don’t work.