Clem72
Well-Known Member
It still boggles my mind that anyone thinks that taking fewer taxes is giving away money, but I have to think that saving 1000 jobs permanently helps local business and produces taxes from salaries.
"Growing" your own revenue at home has to beat just reaching into Uncle Sam's pocket and giving it away in the form of handouts.
I didn't say it was giving away money, I was just answering (I thought) the question asked. I believe in general these situations end up being non-profitable for the cities/states that give the tax breaks, but maybe this one will be different (seems to be more reasonable).
That said, sometimes they do literally give away money. Quite often the locality kicks in a lot of taxpayer money to furnish buildings and infrastructure, rather than just provide the company with a tax incentive. That IS giving away money. Especially when the company just ends up leaving once the contract is up (unless they can get the city to provide even more kickbacks).
It's a race to the bottom as it doesn't fix the issues driving businesses away, merely provides incentives for the few big player companies at the expense (sometimes) of the many smaller ones.