Amazon backs out of the New York City headquarters deal

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Amazon abruptly backed out of a deal for a new headquarters in Long Island City, New York, on Feb. 14 due to a disagreement with new progressive terms the city wanted, such as workers’ unions and less tax breaks. Experts say Amazon would have brought thousands of jobs to the New York City metropolitan area.

“Amazon, by our current tax structure, would generate approximately $1 billion per year in new revenue,” Andrew Cuomo, the Governor of New York, said.

The new headquarters, called “HQ2” by the media, was intended to be a second base of operations for Amazon. Amazon brought economic growth with its first headquarters, which was located in Seattle. Amazon held a competition between multiple cities across the U.S. over who would get to house the new headquarters.

New York City officials tried to convince Amazon to choose them over competing cities by agreeing to give $3 billion in tax incentives to Amazon. Amazon’s decision to build a headquarters in New York City provoked little protest from people in the city. The city’s working class wanted Amazon to locate a headquarters in New York City to provide new jobs and growth opportunities; however, newly-elected politicians, such as Alexandria Ocasio Cortez, criticized city officials for letting a huge corporation abuse the city with the deal. Others say that the new headquarters would generate profit which would ultimately benefit the city.