-->

Monday, November 27, 2017

The company store

The Amazon Sweepstakes was always going to get out of control. And yet, we regret we must still inform you that the Amazon Sweepstakes is out of control.
The e-commerce giant said last month that it had attracted 238 offers from cities that want to be the location for Amazon’s second headquarters. The company says it will spend $5bn (£3.8bn) on the new base, known as “HQ2”, which will employ 50,000 people.

Several of the cities’ bids have been published, revealing the lengths that authorities are willing to go to lay out the red carpet for big businesses.

Chicago and the state authorities of Illinois have jointly offered to hand Amazon more than $2bn in tax breaks, including $1.32bn of its workers’ income taxes. The scheme, known as a personal income tax diversion, would mean Amazon workers pay full income taxes, but instead of the state getting the money to use for schools, roads and other public services, Amazon would keep it.

A 2012 report by the Good Jobs First non-profit organisation said such practices mean that “workers are, in effect, paying taxes to their boss”.
Has New Orleans's proposal to Amazon been published? All I can find is Mitch's cover letter where he talks up our nearly all-charter school system.  Odd that the "data-driven" mayor would leave out the latest performance ratings for some reason.  Maybe it's because he's coming around to the absurdity of the grading system. Probably it's something else, though. We'd love to see what the city has actually offered.  No doubt it's well in line with the proto-fascist "best practices" Chicago and others have put in play where everyone who works for the state sponsored billion dollar company also pays directly for that privilege.

You can find similar characteristics in the much ballyhooed deal with DXC where the state and city guarantee a package of tax incentives (including a "payroll rebate") to a company bringing (possibly) 300 jobs to town next year as part of what looks more or less like a stock-fluffing stunt/downsizing strategy.  Everyone was very proud of that.

This includes Mayor-elect Cantrell, naturally.  During the final televised debate, she made certain to claim that she, "definitely had a hand in making (the DXC deal) happen." She didn't offer any specifics about her role, though.  She did spend a lot of time on the campaign trail talking about how she wanted to "depoliticize" the process by which these "incentives" are doled out. This means she prefers to remove even the possibility of public oversight from the disbursement of public money to private interests. On December 13, LaToya will address the New Orleans Chamber of Commerce's annual meeting at the Hyatt.  No doubt she'll have some fascinating insights to offer on all of this.

Happy Cyber Monday!

No comments: