FRANKFORT, Ky. -- Amazon is seeing a surge in business as people shop at home during the COVID-19 pandemic. The company recently announced plans to hire 100,000 new workers nationwide, and critics say now is the time to halt tax breaks to the e-commerce giant.

Amazon, which operates five distribution centers and a handful of other sites in Kentucky, employs thousands of people.

Greg LeRoy is executive director of Good Jobs First, a nonprofit group that tracks corporate tax subsidies. He said in Kentucky, a percentage of Amazon employees' paychecks are paid back to the company instead of going to local municipalities and the state.

He calls that "paying taxes to the boss."

"If you were to look at just Kentucky by itself, we know of at least 22 deals that Amazon has gotten in the state, worth more than $117 million," LeRoy said.

According to LeRoy, Amazon has received breaks and incentives from every level of government, even as lawmakers have slashed the state budget year after year since 2008 -- a problem likely to worsen as Kentucky grapples with the economic fallout from the coronavirus.

Supporters of corporate tax breaks contend they bring jobs and regional investment.

LeRoy said he agrees Amazon is bringing jobs to the state. But he said local governments give the company access to public services, such as roads and educated workers to run its facilities.

"In fact, in some recent years, Amazon has paid $0 in federal corporate income taxes," he said. "And that's due to a variety of reasons, some of which you might call incentives, but others are just because of the aggressive tax avoidance policy."

LeRoy noted that what started out as a way to lure factories and businesses to rural, mostly Southern states has morphed into a tax-break industrial complex, where states are pitted against one another to offer corporations the best deals.

"And certainly, Kentucky is an example of this," he said. "So, Kentucky created something called the Rural Economic Development Act back in the 1980s. It's a very aggressive form of subsidy."

He said neighboring Ohio and Indiana then passed similar laws aimed at attracting large employers.


get more stories like this via email

Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


get more stories like this via email

Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


get more stories like this via email

Food prices remain high, in Montana and across the country.

A new report by the Federal Trade Commission says the country's largest grocery companies are gouging consumers, by keeping prices artificially high.

Many grocers, retailers and wholesalers have consolidated to cut costs. Grocers continue to blame supply chain problems, even though regulators have said most of those issues have been resolved.

President of the advocacy group Farm Action, Angela Huffman, said retailers were doing more than making up for lost revenue during the pandemic-era supply chain disruptions - and the FTC report says they continue to do so.

"In 2021, the retailer revenues, they rose to more than 6% higher than their total costs, and that those profits are still going up," said Huffman. "So, in the first nine months of 2023, the profits increased to 7%."

At nearly 6.5%, Montana had the nation's ninth-highest grocery price increase in 2023.

The FTC data show Amazon, Kroger and WalMart each gained market share during and after the pandemic - while profits continued to rise.

Other large retailers and wholesalers have consolidated, which they say gives them more buying power and the ability to pass those savings on to customers.

Huffman said that isn't what's happening, and calls on regulators to fine the grocers, or more.

"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," said Huffman. "In years past, they broke up the telephone companies and the railroads and, you know, that would be the ideal outcome for us, is to take away their excessive power."

Huffman also points to a 150% increase in egg prices in 2023, which producers blamed on the avian flu. The FTC says the disease did not justify the drastic price hike.