States, counties and cities are in a race to the bottom because they are giving away taxpayer dollars to provide incentives for corporations to locate withing their boundaries. There’s a fierce competition going on and corporations are playing one region off against another. Whichever one comes up with the largest package of cash grants and loans, sales tax breaks, income tax credits and exemptions, free services, and property tax abatements wins.
Corporations hire people whose job it is to get them the best package. Mayors and Governors desperate for jobs for their citizens are giving away the store with the consequence that schools, parks and police and fire services are underfunded. City employees are forced to take pay and pension cuts in order that corporations can report to shareholders that they got the best possible deal. [Read more…]