Following an extended process, Amazon made an announcement about the location of its new headquarters in Virginia as well as New York. Just after the announcement, the elected representative Alexandria Ocasio-Cortez stated in a tweet that “Amazon is a billion-dollar company. The idea that it will receive hundreds of millions of dollars in tax breaks at a time when our subway is crumbling and our communities need MORE investment, not less, is extremely concerning to residents here.
Post her tweet, the conservatives across Twitter and on TV shows such as FoxBusiness’s Varney and Co. have mocked her. They hold the opinion that her tweet is proof that she doesn’t have an idea about economics and she doesn’t understand the impact the new headquarters will have over job scenario in New York and Virginia.
It is however worth noting that Ocasio-Cortez is right in her opinion of the matter and the critics are nothing but wrong. While she may really not understand economics and her socialist understanding and ideals may not be economically suitable, what the conservative critics don’t understand is that their idea that tax breaks will create jobs is a disastrous economic misunderstanding too.
In all honesty, Tax incentives do not govern the location of company decisions. It is undeniable that Amazon would have considered all other factors before deciding on this location.
Alexandria is correct here that tax breaks are immaterial.