Broken Promises: How Amazon's Delayed Move to Virginia Is Impacting Job Opportunities & Tax Revenue
Photo credit: New York Times
Written by: Sam Orlando
Arlington, VA: Amazon announced on Friday that is was pausing construction on its second corporate headquarters complex in Arlington, VA. This is unwelcome news to Virginia, which has promised $750 million to lure Amazon to the Commonwealth. What's worse: the state has already spent in excess of $4 million dollars in consulting fees alone on the project, according to a report from the Joint Legislative Audit and Review Commission of the state government. This total amount of money lost doesn't include millions in lost tax revenue and other delay related costs. After seeing Amazon abandon its plans in NYC, some in Virginia are wondering what this news bodes for the global investment Virginia made to convince Amazon to build in the state.
The delays in Amazon's establishment of their headquarters in Virginia have been a major source of frustration for many taxpayers who feel that they have been cheated out of job opportunities, real estate taxes, and general economic growth benefits that were promised when the state agreed to subsidize Amazon's move.
Amazon's commitment to establishing their headquarters in Virginia was a major selling point for the state, and taxpayers were promised significant benefits in return for the subsidies provided to the company. However, delays in the establishment of the headquarters have resulted in significant financial losses for taxpayers who were counting on the promised economic growth.
The delays have had a particularly significant impact on job opportunities in the area. With Amazon's headquarters still in the planning stages, many potential employees have been forced to look elsewhere for work. This has resulted in missed job opportunities for Virginia residents, as well as lost revenue from income and sales taxes that would have been generated by the employment of those workers.
In addition to the impact on job opportunities, the delays have also had a significant impact on real estate taxes. With Amazon's headquarters still not established, the value of commercial real estate in the area has not increased as expected. This has resulted in lost revenue for the state and local governments, who were counting on increased real estate taxes to help offset the subsidies provided to Amazon.
Overall, the delays in Amazon's establishment of their headquarters in Virginia have been a major source of frustration for taxpayers who feel that they have been cheated out of promised economic growth and job opportunities. While Amazon remains committed to establishing their headquarters in Virginia, the delays have come at a real cost to taxpayers who were counting on the promised benefits of the company's move.