Amazon packing after (SC) House vote

[The Straight Story]

Amazon packing after House vote
Online retailer cancels contracts, job postings for Cayce site


Amazon all but told South Carolina goodbye Wednesday after the online retailer lost a legislative showdown on a sales tax collection exemption it wants to open a distribution center that would bring 1,249 jobs to the Midlands.

Company officials immediately halted plans to equip and staff the one million-square-foot building under construction at I-77 and 12th Street near Cayce.

“As a result of today’s unfortunate House vote, we’ve canceled $52 million in procurement contracts and removed all South Carolina fulfillment center job postings from our (Web) site,” said Paul Misener, Amazon vice president for global public policy.

The decision came shortly after state representatives rejected the tax break 71-47.

http://www.thestate.com/2011/04/28/1795776/amazon-packing-after-house-vote.html

[drm604]

1. We need to find a way to stop this kind of blackmail.

Companies should not be able to get away with extortion like this.

Realistically, I don't see how it can be stopped, but there must be something that can be done.

[calimary]

3. Man I sure do agree on that one! There has to be a price to pay for pulling out,

for threatening extortion and blackmail like this, and holding an entire state hostage.

[Snoutport]

4. Everyone needs to boycott amazon.

[Dappleganger]

6. Tell your politicians to stop offering them corporate welfare, then.

Because they're the ones who started it, companies won't pass it up and the endless cycle will continue as long as the trough is allowed to stay open.

[drm604]

10. The problem is that if one state doesn't do it they'll lose out to another that does.

In this case, SC did the right thing and they're losing jobs because of it.

Now if everyone else would also stop giving in to extortion then this would stop.

[bbinacan]

7. Extortion is everywhere

The Federal Government threatens to deny states funds if they don't do what the Feds want. I don't know how you get rid of it.

[Exilednight]

2. I hope they still have to pay for the 1 million square foot building. n/t

[Dappleganger]

5. Of course they did, they will lose their shirt on that.

Problem is, states have set up this gravy train mentality with corporations (and folks like my FL governor Scott is doing the same). Corporations know they can get sweet as pie setups, so why would they not shop around to the highest bidder? There are plenty of states who will throw in taxpayers' $$$ in exchange for what they believe will be trickle down jobs. What's happening is as soon as the tax deals dry up, the company leaves and relocates to another state for a new round of sweet deals.

If one or two states stop the sweet deals, it is no big deal for a company to leave. What needs to happen is ALL the states put a stop to this shit and then the corporations will be have to choke on that.

Also, this Amazon gravy train with buying online and paying no local sales tax is gonna dry up one day, too. I am quite guilty of using them to save money and without regret, but I know the day will come to a close at some time.

BTW, I don't fault Amazon but fault the STATES and CITIES for starting this shit to begin with. It's one thing to give incentives to small businesses who are just starting out, but quite another to give these corporate welfare handouts to established companies who obviously don't need the help.

Edited to add: I SHOULD fault Amazon as well--they are behaving like any other typical greedy corporation who doesn't want their taxpayers' funded welfare turned off.

[moondust]

8. Bribery.

Not as easy as it used to be for governors to offer sweet deals for companies to move in with jobs (making the governors look good at reelection time): they have to increasingly compete with China, Mexico, and India. That apparently means busting unions, gutting education and public services, etc. so they have more booty to offer in bribes. Creating a corporate paradise is hard work!

[Brickbat]

9. Fuck those union-busters.

[DCKit]

11. In THIS case, I beg to disagree.

SC was willing to give Amazon those breaks in exchange for jobs, and the resulting effect on the local economy. Then the legislature decided to renege, probably thinking that Amazon was stuck and would have to acquiesce, because of the sizable investment they'd already made.

I'm not a fan of corporate giveaways. There's a $650M stadium four blocks from my home that I'm helping pay for with my property taxes, but that one generates little-to-nothing of value for the community.