Quote:
Originally Posted by emathias
Maybe I'm an idiot (completely possible) but why would the fiscal health of a locality have any role in why one place was more or less suitable than another for site selection? Given that most places will make all sorts of exceptions for a primary business, what does it matter if the overall fiscal health of a metro area is excellent or not? Seriously, what does it do for or to a business if the metro area has its fiscal ducks in a row?
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I don’t think you’re alone in this.
One fear that comes to mind is that a local government in dire straits could 1) decide that it needs to raise revenue and target local businesses or residents; or 2) decide that it needs to reduce expenses and cut local services.
The first wouldn’t apply to Amazon as they would have contractual exemptions from most local taxes anyway, and possibly commitments to fund infrastructure and other improvements.
Raising property taxes or local sales taxes could adversely affect Amazon employees, of course. But this is easy to consider as a downside case in the analysis - simply take into consideration how a city would fare on the “local tax burden” metric if they were to, you know, raise taxes a bit.
For that reason I don’t think it would be a factor that could disqualify any city, but it does create uncertainty and downside risk versus the status quo.