An article in the Wall Street Journal (May 31, 2012) describes a request by Amazon, which recently agreed to collect sales taxes for purchases soon, to get back some of the sales tax as an incentive. The company claims that its warehouse locations were justified based on location and logistics costs, but claims to follow practices used by other retailers such as Kohl’s. Given that a portion of the sales tax is meant to cover local costs, should cities be allowed to give it back to retailers or should they just reduce tax rates ? Given that many other retailers do not receive such incentives, could providing such incentives to Amazon be a competitive requirement ? Could the jobs generated by the warehouse, and associated tax benefits, be considered a sufficient reason to provide a break to Amazon ?