Amazon touted as big win for N.Y., but math is more complex
New York officials tout their deal to land a new Amazon headquarters as can’t-miss math. The city and state put up $2.8 billion in tax breaks and grants. In return, they get an economic engine expected to generate $27 billion in new tax money over a quarter-century.
“This is a big moneymaker for us. Costs us nothing,” Gov. Andrew Cuomo said when the agreement was announced.
Experts say the economic equation isn’t that simple.
The state’s predicted 9-to-1 return on its investment was based on a widely used economic model that compares the costs of tax incentives with expected tax gains, but it didn’t factor in the substantial costs of accommodating Amazon’s growth in the city, economic development researchers said after reviewing the documents.