A local labor union has provided Fort Wayne City Council a document that, according to the union, shows why the requested tax abatement for Amazon is a bad investment.
Teamsters Local 414 listed in a news release several reasons why it opposes the $7.3 million tax abatement: depressed wages and working conditions, skyrocketing injury rates, high turnover, struggling tax coffers and no net job growth. It also added that Amazon made $21 billion in profits for 2020.
The request is for Amazon's property at 5510 Flaugh Road off U.S. 30 to get tax breaks on its planned $100 million investment. Amazon is expected to create 1,000 jobs with an annual payroll of $30 million and an average annual salary of $30,000, which is $15 an hour.
If approved, Amazon would save about $7.3 million on personal property taxes over the next 10 years. The equipment's assessed value would be reduced by 100% the first year and gradually return to full value over the following decade.
Ehren Gerdes, business agent and trustee of Teamsters Local 414, will speak at the public hearing at 5:30 p.m. today. City Council is expected to discuss the request later in the meeting before voting.
“Amazon made $21 billion in profits last year and already received a tax break for the building in Fort Wayne; now they are coming back looking for yet another handout,” Gerdes said. “The money Amazon would pay in taxes on equipment would be a drop in the bucket for the company but could go a long way toward real investments in the Fort Wayne community. We are urging the Fort Wayne City Council to vote no. Do not let Amazon take advantage of our community.”
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