Should Amazon come here?

Amazon

 

Should Amazon base its second headquarters here in New Jersey? Getting Amazon here in New Jersey would be a big shot in the arm to our state’s economy.

 

Per Money, “New Jersey government business officials said Wednesday that the state will make a bid for the internet retailer’s $5 billion project, bringing the promise of 50,000 jobs. The Garden State is an epicenter of innovation with a burgeoning pool of tech talent,” Gov. Chris Christie said in a statement. “We plan to make a compelling case.”

 

My question is it worth getting Amazon to put their second headquarters here in New Jersey? Per CNN Tech, “New Jersey could offer Amazon $5 billion in tax breaks spread out over 20 years. That is, if a new proposed law is passed. The current law in the state caps incentives at $5,000 per job created. But a proposed legislative change for “transformative projects” — such as Amazon’s new headquarters — would increase that to $10,000 over 20 years, according to a spokesman for Governor Chris Christie.

The governor said the new law, which has not yet been crafted in detail, would be limited to projects of this magnitude.” The answer per Governor Christie is that “New Jersey‘s residents stand to gain some $9 billion in economic benefits if Amazon builds here, Christie stressed. The tax incentives would be worth about $5 billion, according to lawmakers.” Of course the Governor has gotten promises from both gubernatorial candidates to support his proposal.

 

I can see the benefits of have multiple Amazon distribution centers throughout the state; no one can dispute the fact that they are generating much needed employment. But economically can have Amazon’s second headquarters here bring as much benefits as Christie is saying? My answer would be a qualified yes, because having Amazon here other major corporations just might be persuaded to also come here and thus more employment would be generated. And with our high unemployment rate here in New Jersey that would be a great way to grow our way out of the so called Property Tax dilemma. Because of increased employment there would be more income tax revenue that could be distributed to all the state’s school systems to offset the need for high property taxes.

 

So I must conclude that it is very desirable to attract Amazon to place its second headquarters here in New Jersey. There of course is a caveat; the politicians must not give away too many economic benefits. For if they do then New Jersey will not be the winner, but the loser.

That is my opinion- Jumpin Jersey Mike

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