U.S. cities are offering Amazon at least as much as $7 billion in tax breaks ahead of a Thursday deadline as they compete to house its second headquarters. Fred Katayama reports.
Dozens of U.S. cities have submitted bids to house Amazon's second North American headquarters ahead of Thursday's deadline to submit offers. Some, like Newark, are offering billions of dollars: New Jersey Governor Chris Christie. (SOUNDBITE) (English) NEW JERSEY GOVERNOR CHRIS CHRISTIE, SAYING: "All of the economic incentives put together, from the city and the state, would realize $7 billion in potential credits against Amazon's state and city taxes, and still it would be an economic benefit for the state, which the Economic Development Authority estimates at over $9 billion in economic benefit to the State of New Jersey." Across the Hudson River, New York City made a proposal without any incentives. But New York state is expected to offer some, according to a spokesman for the city's economic development corporation. Across the country, California throwing in $300 million plus other extras. Realtor.com's chief economist Danielle Hale. (SOUNDBITE) DANIELLE HALE, CHIEF ECONOMIST, REALTOR.COM (ENGLISH) SAYING: "The city that we thought could potentially benefit the most from Amazon coming in from a housing market perspective would be Pittsburgh, Pennsylvania. It's large enough that Amazon wouldn't cause it to become a one company town. Its housing market is doing well, but has enough capacity to welcome in additional workers without being, you know, too overloaded from an inventory shortage perspective. The market is appreciating, but not on the same order of other cities that are increasing at double digits." Moody's says Austin is the most likely winner. The city has an impressive work force, low costs of doing business and a good quality of life. It's also the headquarters of the retailer Amazon bought recently, Whole Foods Market. Amazon will announce its decision for its second campus next year.