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Charlotte Talks: Is Amazon A Good Investment For Taxpayers?

Flickr / Pictures of Money

Thursday, Oct. 19, 2017

Cities and states are preparing to offer incentives for Amazon's second headquarters. It's a strategy the company has used to expand its footprint in the Carolinas and nationwide. Mike Collins looks at how it might play into the headquarters competition.

Thursday is deadline day in the nationwide competition to land Amazon’s second North American headquarters. Cities and states luring the online retail giant must submit their offers, including the incentives that Amazon says are must-haves.

But before this bidding war got underway, Amazon was already enjoying public subsidies that allowed for the company’s nationwide system of warehouses and distribution centers to mushroom.

The Charlotte Business Journal and its sister publications last week reported on those incentives. Among the 33 states with Amazon centers, South Carolina, the Business Journal reports, ranks third for the amount of known subsidies given to Amazon: $100 million.

Amazon, though, isn’t the only corporation ponying up to the taxpayer trough as it looks to expand. Toyota and Mazda are going in together on a joint auto-making facility – the type of project North Carolina has been seeking for years – and are said to be asking for at least $1 billion in incentives from bidding states.

Does North Carolina have the incentive capacity to land an Amazon or a Toyota? Do incentives pay off in the long run for the taxpayers financing these corporate moves? Are incentives a necessity if states want to win?

GUESTS

Ken Elkins, senior staff writer, Charlotte Business Journal (@CBJElkins)

Craig M. Douglas, director of editorial research and analysis, American City Business Journals (@BosBizCraig)

John Lassiter, former chairman, Economic Development Partnership of North Carolina

Greg LeRoy, executive director, Good Jobs First (@GregLeRoy4)

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