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Amazon now Offering Jobs in lieu of Sales Taxes

In its latest move to avoid collecting sales tax, Amazon has offered the state of Texas a promise of 5 thousand new jobs and the construction/expansion of distribution centers worth $300 million.

TechFlash is reporting Amazon is trying to trade the new jobs in exchange for a sales tax exemption. Amazon would invest the $300 million in Texas over the next 3 years and in return Amazon would get a 5 year free pass.

This would be a pretty good deal for Amazon; it needs to build more distribution centers anyway. And the state of Texas would also benefit; 5,000 jobs would bring in far more taxes than Amazon could have collected. But at best this will only be a stopgap measure. At some point Amazon will run out of states willing to cut a deal.

image by SeanMcTex

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