Here’s a story from last week’s Wall Street Journal about using tax incentives to lure businesses:
Concerns have mounted in recent years from some state legislators and economic development officials about the wisdom of competing for business using tax incentives. Some research has shown that economic incentives make little difference in where a company ultimately chooses to locate. Despite that, localities can end up engaging in bidding wars, pushing up the cost of new jobs.
“It’s a race to the bottom and it creates this economic cage match between cities and states all in favor of the biggest players in the market,” said Assemblymember Ron Kim, who sponsored legislation in New York earlier this year that would allow neighboring states to agree not to enter into a bidding war for new business.
Who woulda thunk it?