Through Subsidies, ‘Taxpayers Effectively Paying Wages Of Amazon Workers: Study

  • A new study reveals that despite the more than $5 billion in tax subsidies that local governments have given to Amazon to attract their business, localities that were able to lure Amazon fulfillment centers saw almost no economic benefit to their communities as a result.
  • The study for the Social Science Research Network examined 20 years’ worth of data in 134 communities that offered Amazon subsidy packages for new facilities.
  • The study, The Employment Effects of Tax Subsidies for the Construction of Amazon Facilities, found that local governments have used a variety of methods to entice Amazon to build new fulfillment centers in their communities. These incentives come in the form of property tax exemptions, corporate tax relief and/or direct subsidies.
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