Description: Amazon has pulled the plug on setting up a second HQ in Long Island, New York. Opposition had been rising to the approximately $3 billion in tax breaks Amazon was due to receive from putting offices in the Empire State. The argument seems to break down on two sides: one claiming Amazon is bringing big benefits of jobs, taxes and salaries; the other claiming Amazon is not that great an employer and is being treated to big tax breaks.
Date: February 15 , 2019
Source: ozy.com
Link: https://www.ozy.com/need-to-know/special-briefing-amazons-new-york-exit-isnt-politics-as-usual/92704
Discussion points:
1) What do you see as the most interesting part of this Amazon story?
2) The article says this e-Commerce giant has a tax rate of negative one per cent. How do you think this came about?
3) Page 806 in Wiley’s Financial Accounting: Tools for Business Decision-Making gives us historical information on Amazon’s price-earnings ratio. See if you can find Amazon’s price-earnings ratio for he most recent fiscal year.
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