As a life-long resident of New Jersey, I hope this happens.
Yes, $7 billion in tax incentives is a lot. But it's not like New Jersey / Newark would be collecting those property/wage taxes if Amazon didn't move in. But Newark needs help - the city was recently giving away land virtually for free to entice people to build homes and move in, and even then not many people took it.
The city is centrally located, accessible by public transit (NJ Transit and PATH), close to a major airport hub, etc., and despite that there's just no industry there. The city's been trying very hard to lure tech talent to the city (and managed to get Amazon's Audible to base itself there). Bringing Amazon would be a huge win for the city and the state.
And for me, personally, since I could cut an hour off my commute by going to Newark instead of NYC. So do it, Amazon!
How are new businesses supposed to compete when their incumbent legacy competition is using billions of dollars in tax subsidies to keep prices artificially low? New Jersey may get a ton of new jobs, but they'll also be helping to harm the overall health of the market.
And specifically at New Jersey's level, relying on a single employer to provide so many jobs harms the health of the local economy and community as well. Amazon is no exception to long-term business trends, and their fortunes will change. If there are eventual layoffs or even closure then all those people who are suddenly out of work will have a terrible impact both on the salaries of other workers in the area as well as whether people decide that they must move away to continue to make a living. Government's responsibility is to encourage the growth of many different businesses, so that the local economy can survive the closure of a few, and not to become overly dependent on a single employer.
I want you to be right but that's simply not the reality on the ground. Our infrastructure is not very good.
Here is something Path tweeted half an hour ago:
@PATHTrain: Due to a signal problem on the Hackensack River Draw Bridge, service on NWK-WTC line is subject to a delay. [44]
This is the same panynj that was able to find $4B for a WTC station with a $2B budget. Almost 100% over budget when we should be spending more on fixing that bridge signal problem that seems to happen daily...
I have hope. I am not holding my breath.
Update: @PATHTrain: Concerning the earlier signal problem on the Hackensack River Draw Bridge, service on the NWK-WTC line is resuming normal schedule. [46]
Oh I'll be the last person in the world to defend PATH or NJ Transit. Or the turnpike for that matter.
But hey, they're something at least, and if you're gonna base 50,000 people in the Northeast, where else would you go? NJ has the talent, proximity to major transportation hubs and NYC, and it's willing to make major incentives happen. Not a bad choice, if you ask me.
The fact that Christie, Booker, and Baraka are able to share a stage together without petty sniping shows how serious NJ is about winning this bid. That being said, I feel that this is going to simply act as the bar for other states to top. We still have 6 days left before the deadline, so I expect other places to roll out their plans as the week goes by.
I also see no mention of property tax relief. NJ has the highest property taxes in the country, and as someone who moved out of Jersey (but didn't own a house), I have no desire to ever pay property taxes at those rates.
Too many companies in NJ have been killed of by militant unionism, plus tax/pension/wages for civil serpents for Amazon to think of it. Why do you think NJ is turning to dust
Yes, $7 billion in tax incentives is a lot. But it's not like New Jersey / Newark would be collecting those property/wage taxes if Amazon didn't move in. But Newark needs help - the city was recently giving away land virtually for free to entice people to build homes and move in, and even then not many people took it.
The city is centrally located, accessible by public transit (NJ Transit and PATH), close to a major airport hub, etc., and despite that there's just no industry there. The city's been trying very hard to lure tech talent to the city (and managed to get Amazon's Audible to base itself there). Bringing Amazon would be a huge win for the city and the state.
And for me, personally, since I could cut an hour off my commute by going to Newark instead of NYC. So do it, Amazon!