Liberal, conservative groups unite to oppose Amazon tax breaks

A liberal and a conservative group have united to oppose Gov. Chris Christie's proposed $7 billion in tax breaks to lure Amazon's second headquarters to Newark, calling the incentives "corporate welfare" that would harm schools and public transit.

Leaders of New Jersey Policy Perspective, which backs higher sales and income taxes on top earners, and Americans for Prosperity-New Jersey, the state chapter of the free-market organization founded by the billionaire Koch brothers, noted that they agree on few policy issues. But they came together to denounce what they called a giveaway to one high-profile company that would penalize taxpayers and small businesses across New Jersey.

"It rigs the system," said Jon Whiten, vice president of New Jersey Policy Perspective. "It enriches those that are already doing quite well. It distorts the tax code."

Seattle-based Amazon, which surpassed Wal-Mart as the world's largest retailer in 2015, touched off a bidding frenzy among states and cities last month when it announced that it was building a second headquarters that would cost $5 billion and employ 50,000 people. The company said Monday that 238 states, cities and other jurisdictions in the U.S., Canada and Mexico filed bids.

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Christie endorsed Newark's application and pledged as much as $7 billion in tax incentives, including $5 billion in state tax relief over a decade and $1 billion each in breaks on property taxes and income taxes from Newark. It would be the largest tax incentive ever offered by New Jersey, and the largest publicly reported package of incentives from any state to entice Amazon's second headquarters.

Christie touted the proposal earlier this month as a boon to the state's economy, with 50,000 high-paid Amazon employees boosting local retailers, neighborhoods and schools. Spokesman Brian Murray on Monday declined to respond to the criticism from New Jersey Policy Perspective and Americans for Prosperity, referring questions to the state's Economic Development Authority. Virginia Pellerin, a spokeswoman for the authority, said it does not comment on pending legislation.

Whiten and Assembly Deputy Speaker John Wisniewski, D-Middlesex, said forfeiting tax revenue from Amazon would harm school districts and NJ Transit, among other tax-supported programs. Wisniewski said one of the state's key pitches to Amazon — proximity to Manhattan — would be undermined if NJ Transit rail service to New York suffers due to a lack of funding.

"We're pledging money that we've already given away," he said. "We're pledging money that we may not have."

Erica Jedynak, state director of Americans for Prosperity, said the state would be better served by across-the-board tax and regulatory relief that would encourage businesses to move to and expand in New Jersey.