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By Robert B. Engel
Amazon's Prime Day is often hailed as offering some of the best deals of the year in online shopping, but a closer look at the flow of good- to be companies that has contributed to the rapid growth of Amazon The premium subscription service reveals that Prime is a gross business for consumers and taxpayers.
The legislators of New York, who have already given enough money to taxpayers, have to think long before giving an extra dime to the third
According to analysts, the real value of the Prime package, which includes the distribution of music and videos and, of course, the expedited shipping service, exceeds $ 780 per year. But members still only pay $ 119 for their premium membership. This seemingly unbeatable deal for consumers is only beginning to make sense in the light of the fact that Amazon has built its business model with great help from the government. In fact, Amazon has received more than $ 23 million in New York taxpayer subsidies since 2000.
From 2000 to 2017, Amazon spent at least $ 9.8 million in state lobbying – more $ 750,000 in New York alone. in campaign contributions. Amazon's own reports indicate that it spent nearly $ 14 million on state and local "government relations efforts" between 2013 and 2017.
Meanwhile, local communities and communities small businesses have endured the tactics of Amazon. Taxpayers have lost more than $ 700 million in sales tax revenues, money that could have been used to ease school attendance, modernize infrastructure in ruins or expand access to health services.
Amazon's refusal to pay its fair share decimated high-paying jobs and small businesses, which are forced to try to compete with the technology giant. Amazon often promises economic development and new jobs in its warehouses and fulfillment centers in exchange for help from taxpayers. But the company pays its employees an average salary of less than $ 29,000 a year.
Amazon continues to fish unprecedented amounts of New York welfare for its second seat, often called HQ2. But as state and city officials assess their priorities, Prime Day should serve as a resounding warning. Taxpayers are tired of giving up their money to the world's third richest company, helping to subsidize Amazon Prime. Last year, Amazon reported $ 177 billion in revenue, more than enough to build a second headquarters on its own.
The time has come for New York lawmakers to defend Amazon and their lobbyists, give priority to local communities and finally
Robert B. Engel is a director at Niagara University and wears Chief of the Free & Fair Markets Initiative, a non-profit coalition focused on supporting a modern and equitable market serving local small businesses.
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