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Thread: Amazon halts Seattle expansion over city tax proposal

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    Veteran Member bajisima's Avatar
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    Amazon halts Seattle expansion over city tax proposal

    Even as Amazon continues to grow at a staggering rate, it is pumping the brakes on its long-planned hometown expansion. The retail giant threw down the gauntlet this week when it announced that it would stop construction on a new building because of a proposed city tax.

    The new law is designed to address Seattle’s housing crunch, charging large companies $500 per head. The proposal is pretty clearly aimed at Amazon’s own expansion, and the company is taking the move to heart, potentially abandoning construction on a new building and just moving into a pre-existing space instead.

    “I’m deeply concerned about the impact this decision will have on a large range of jobs — from our building trades, to restaurant workers, to nurses, manufacturing jobs and tech workers,” the city’s mayor Jenny Durkan told the paper. “At the same time, our city must urgently address our homelessness and affordability crisis and lift up those who have been left behind.” While $500 a head would be a drop in the bucket for Amazon, the company clearly understands its leverage as the city’s largest employer. The move comes as various cities around North American have tripped over themselves to house Amazon’s second headquarters. Wherever the company ultimately lands seems likely to sweeten the deal with some manner of corporate tax cut.

    https://www.yahoo.com/finance/news/a...164956641.html

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    Sally Sitter Paris's Avatar
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    Burn those tax dodgers to the ground!
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    Veteran Member bajisima's Avatar
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    Quote Originally Posted by Paris View Post
    Burn those tax dodgers to the ground!
    Amazon never likes to pay taxes. They paid $0 in 2017 and have been avoiding European taxes for years.

    https://itep.org/amazon-inc-paid-zer...m-new-tax-law/
    https://www.theregister.co.uk/2017/0..._tax_case_irs/
    Thanks from NeoVsMatrix

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    Quote Originally Posted by bajisima View Post
    Amazon never likes to pay taxes. They paid $0 in 2017 and have been avoiding European taxes for years.

    https://itep.org/amazon-inc-paid-zer...m-new-tax-law/
    https://www.theregister.co.uk/2017/0..._tax_case_irs/
    Amazon isn't very profitable, so there isn't much income to pay taxes on. The Seattle tax wasn't based on income.
    Thanks from Neomalthusian

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    Senior Member NeoVsMatrix's Avatar
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    Quote Originally Posted by Libertine View Post
    Amazon isn't very profitable, so there isn't much income to pay taxes on. The Seattle tax wasn't based on income.
    They made 1.8 Billion $ in profits in Q4 2017 alone.
    given, this is the first significant quarter with a huge increase on profits from all the time before since their IPO.. but they do NOW make a huge profit.

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    Quote Originally Posted by Libertine View Post
    Amazon isn't very profitable, so there isn't much income to pay taxes on. The Seattle tax wasn't based on income.
    Bezos is the richest guy in the world, isn't he?

    Why would he want to pay taxes?

    "Only little people pay taxes."

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    Quote Originally Posted by bajisima View Post
    Even as Amazon continues to grow at a staggering rate, it is pumping the brakes on its long-planned hometown expansion. The retail giant threw down the gauntlet this week when it announced that it would stop construction on a new building because of a proposed city tax.

    The new law is designed to address Seattle’s housing crunch, charging large companies $500 per head. The proposal is pretty clearly aimed at Amazon’s own expansion, and the company is taking the move to heart, potentially abandoning construction on a new building and just moving into a pre-existing space instead.

    “I’m deeply concerned about the impact this decision will have on a large range of jobs — from our building trades, to restaurant workers, to nurses, manufacturing jobs and tech workers,” the city’s mayor Jenny Durkan told the paper. “At the same time, our city must urgently address our homelessness and affordability crisis and lift up those who have been left behind.” While $500 a head would be a drop in the bucket for Amazon, the company clearly understands its leverage as the city’s largest employer. The move comes as various cities around North American have tripped over themselves to house Amazon’s second headquarters. Wherever the company ultimately lands seems likely to sweeten the deal with some manner of corporate tax cut.

    https://www.yahoo.com/finance/news/a...164956641.html
    It's not just this tax, in my opinion, it's an ongoing display of extremely hostile anti-business rhetoric from the City Council.

    It may finally be backfiring. Workers of the world, unite — against Kshama Sawant
    Sawant, Trump are equally wrong on Amazon

    Or get this:
    Councilmember Kshama Sawant has officially jumped the shark and has become unhinged. What used to seem like a politician playing to her crowd, staying on brand, has morphed into the desperate, unhinged rantings of a bully desperate to hold onto the power and influence she once had.

    Working in tandem with the union front group Working Washington, the claim is that Amazon should be prosecuted for “intimidating a public servant.”

    The intimidation? Amazon pausing the expansion of their business in Seattle until they see if the ‘head tax’ passes.

    Kshama Sawant, union front group push to ‘prosecute Amazon’
    Last edited by Neomalthusian; 13th May 2018 at 09:41 PM.

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    Nuisance Factor Yeti 8 Jungle Swing Champion, YetiSports 4 - Albatross Overload Champion, YetiSports7 - Snowboard FreeRide Champion, Alu`s Revenge Champion boontito's Avatar
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    Seattle is dealing with several negative consequences of being home to several very successful private businesses. Low income housing disappeared years ago and now middle class housing is going the same route. This has helped increase both a worker shortage problem as well as homeless issues.

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    Southern Strategy Liberal OldGaffer's Avatar
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    Quote Originally Posted by boontito View Post
    Seattle is dealing with several negative consequences of being home to several very successful private businesses. Low income housing disappeared years ago and now middle class housing is going the same route. This has helped increase both a worker shortage problem as well as homeless issues.
    You mean they don't want to wind up looking like Buenos Aires and Rio? Those are both Libertarian Paradise cities.

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    Quote Originally Posted by NeoVsMatrix View Post
    They made 1.8 Billion $ in profits in Q4 2017 alone.
    given, this is the first significant quarter with a huge increase on profits from all the time before since their IPO.. but they do NOW make a huge profit.
    Their net margin is terrible.

    https://ycharts.com/companies/AMZN/profit_margin

    "Seattle has an affordability and housing problem, and the City Council is considering asking businesses to chip in. A proposal in the works would tax Seattle businesses with at least $20 million in taxable gross receipts 26 cents per employee for every hour they work.

    The city estimates that an employee tax would raise about $75 million a year."

    Amazon shouldn't receive subsidies but likewise these businesses shouldn't be subject to specifically onerous taxation that targets only them.
    Last edited by publius3; 14th May 2018 at 04:51 AM.
    Thanks from Wonderer

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