Maryland State Wire

Maryland is a top contender in Amazon's quest for a second headquarters, but the benefits of hosting this second headquarters may not outweigh the costs. 

Robert Engel, chief spokesperson for the Free & Fair Markets Initiative, said Maryland has seen millions of taxpayer dollars end up in Amazon’s coffers as a result of corporate welfare that local businesses don’t receive and don’t benefit from.

"That means our communities are not seeing investments that could provide improved roads, efficient mass transit systems or better education," Engel said in an interview with Maryland State Wire.

Robert Engel is chief spokesperson for the Free & Fair Markets Initiative. | Contributed photo

Engel said local lawmakers have given away enough taxpayer dollars to the third-richest company in the world.

"In fact, Amazon has received $46 million in subsidies from Maryland taxpayers since 2000," Engel said. "It is time for elected officials to listen to concerned citizens who are saying that enough is enough and that a company raking in record profits can well afford to pay its own way for HQ2."

Engel said Maryland is promising as much as nearly $9 billion for the second headquarters — but that’s just the direct upfront costs to taxpayers.

"We also need to consider all of the indirect and ongoing costs as well, such as rent increases, diminished funding to build affordable housing, demands on public education, infrastructure to meet the needs of residents, controlling increased traffic congestion, or small businesses that lose their top talent and could be forced to close," Engel said. "And that is to say nothing of the backroom dealing that local lawmakers have been engaging in, which could balloon costs even further to our communities."

Engel said the cities that Amazon is courting for its second headquarters have the idea that Amazon will be a cure-all for problems.

"These cities have a misguided notion that Amazon will be a panacea—that the benefits will outweigh the costs—but that is simply not the case," Engel said. "Time after time, we have seen companies overpromise and under deliver when it comes to winning these massive taxpayer giveaways. Just look at what happens every time Amazon gets an enormous taxpayer handout for a new fulfillment center or warehouse – the company rides into town with vague promises of economic development, but data shows that jobs created by Amazon are actually offset by job losses in other industries."

Engel said local lawmakers would have no problem finding good -- and in some cases urgent -- uses for the billions of dollars that have been allotted for Amazon's second headquarters.

"Start by shoring up the underfunded public pension plans and keep the promises that were made to workers," Engel said. "Beyond that, there are scores of opportunities to make meaningful investments in their communities — in schools, on roads and other infrastructure, in public transportation, in recreational facilities, in health care services or in public safety — to make them better places to work, live and raise their families."

Engel said Maryland needs and deserves real investments that will benefit everyone, not just a single company that has shown no interest in paying its fair share.

Amazon will announce this year where it will build its second headquarters. In addition to Maryland, it is considering 15 other states and Washington, D.C.