Amazon made big headlines yesterday when it announced it was walking away from its plan to build a new headquarters in New York City.
The company was under intense pressure from the media and politicians who were angered that New York City’s local government was giving away too many tax incentives, purportedly worth around $1.5 billion.
(Including the state government, the total tax break was around $2.8 billion.)
People had some ridiculous idea that NYC Mayor Bill de Blasio was going to hand a check for $1.5 billion over to Jeff Bezos, already the richest man in the world.
That’s complete nonsense.
The biggest part of the package was a tax credit that would vary based on how much Amazon paid its employees; it was capped at $1.2 billion over ten years.