Maryland Is Crony-Capitalism Personified
Article from Reason by Christian Britschgi.
Amazon has narrowed the list of places where it might put its second headquarters down to 20. Maryland’s Republican governor, Larry Hogan, is so excited that Montgomery County made the shortlist that he’s offering Amazon a new $5 billion package of incentives.
“Amazon sent a clear signal that Maryland truly is open for business by selecting Montgomery County as one of an elite group of contenders for this transformative project,” Hogan said today as he unveiled the sycophantically named Promoting ext-Raordinary Innovation in Maryland’s Economy (PRIME) Act.
The PRIME Act offers a lot of sweeteners. It includes 10 years of tax credits against any state and local property taxes, plus a 10-year exemption on any sales taxes owed by Amazon on purchases of construction equipment and warehouse equipment. Maryland would also give Amazon a 10-year tax credit to cover state income taxes paid by any employee Amazon hires within 17 years of setting up shop in the state, as long as that employee earns between $60,000 and $500,000.
And it’s not just tax abatements. The proposal offers the online retailer $150 million in direct grants. Add the legislation’s road, transit, and infrastructure upgrades, and the whole package comes to $5 billion—the same amount Amazon plans to spend on the new headquarters.
Read the entire article at Reason.
Image Credit: By David Shankbone (Own work) [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons