Latest Tax Plan Compels Amazon.com, Inc (NASDAQ:AMZN) To Pause Its Development Plans

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Amazon.com, Inc (NASDAQ:AMZN) is challenging the head tax vote by City Council which it deems inappropriate. It was in that particular regard that it resolved to halt the major expansion plans in Seattle.

Effects of the new decision

The plan is now to reconsider occupying another building whose construction is currently underway as opposed to setting up a new one downtown. The latest decision puts in jeopardy almost 7,000 or more jobs, a matter that several market observers have criticized strongly.

The part that the business guru found frustrating was the one regarding charging employers $500 per for every employee whose aim was to help resolve housing crisis.

It was on Wednesday that Amazon’s spokesman, Drew Herdener, disclosed that the company had put to a standstill the construction planning. He delved deeper into the matter to outline that Amazon had for over quite some time evaluated several options for leasing out the space it wanted to use to establish a new building.

Most of the city developers and officials have been shocked by the recent decision by the business giant. Seattle’s mayor has made a statement outlining the move by Amazon came as a shocker to her. However, she remains optimistic asserting that she will work with community leaders as well as the members of Seattle’s business in a bid to establish a common ground.

Amazon’s future plans

It is worth noting that Amazon is currently the occupant of almost 10 million square feet of office space in the state and no other company beats it in terms of the space that it occupies.

Much criticism is being directed at Amazon’s search for a second headquarters, but that is normal according to analysts. The company is busy shopping around to see which of the cities will give it the best deal. That was after it discovered that it had outgrown Seattle and thus change was imminent. Amazon has said that it will soon hire more employees in Boston and Vancouver.

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