Amazon is hoping to snag some sweet tax credits wherever it decides to construct its newly announced plans for a second corporate headquarters.
But one of Silicon Valley’s leading representatives in the U.S. Congress doesn’t think the e-commerce company actually deserves them — in his California district or anywhere else.
In a series of tweets on Thursday, Democratic Rep. Ro Khanna lamented that it would become a “race to the bottom” if cities tried to woo Amazon in part by offering the tech giant overly favorable financial terms. That’s already apparent in Memphis, Tenn., perhaps, where the mayor there tweeted earlier in the day that local officials would “absolutely make a bid.”
Tech companies, flush w cash, must not demand local tax breaks up front. They shld partner w communities on jobs. https://t.co/3O1bkHbouF— Ro Khanna (@RoKhanna) September 7, 2017
I don't think they should be asking for tax breaks from cities within my district or those outside. They should be investing in communities— Ro Khanna (@RoKhanna) September 7, 2017
That's why we need federal policy to encourage tech investment and training across country instead of race to bottom— Ro Khanna (@RoKhanna) September 7, 2017
For its part, Amazon already has made clear that it’s going to build its next U.S. hub in the city with the best perks. That includes “incentives offered by the state/province and local communities,” the company said in its request for proposals, including tax and utility credits and and other fee waivers. Once built, though, Amazon estimates the new corporate headquarters could employ as many as 50,000 workers.
That said, Amazon’s attempt to solicit favorable financial treatment is ripe for criticism at a time when another tech giant’s deal with locals — Foxconn’s forthcoming factory in Wisconsin — is in the crosshairs. There, the Taiwanese supplier walked away with a whopping $3 billion in tax credits following a deal announced this July.
This article originally appeared on Recode.net.