This kind of stuff has been going on for decades. It's perfectly legit for an elected government to offer incentives to a company thinking of building a plant.

This kind of stuff has been going on for decades. It's perfectly legit for an elected government to offer incentives to a company thinking of building a plant. But governments get their pockets picked ALL THE TIME. It goes like this: Company: we want to build a new office / factory. Give us an incentive. Elected official: yes yes yes. How about lower taxes? Company: is that your final offer? Elected official: we'll subsidize construction. Company: Deal. Months go by. Gripping and grinning. Official wins re-election for bringing in "jobs." Company builds plant, hires some people... Company: we're moving to Central America. Elected official: but, but, but, you said.... Company: business is business, suckahs. We're outta here. ------------------ A possible answer to the problem. Use a formula that gives companies financial incentives to employ people, and terminates government liability when companies stop employing people. It can be as generous as required. But it depends on actual employment. Company: New plant? Elected official: yes yes yes. We will refund you 80% of the FICA withholding tax you pay for hourly employees at your new location. We'll send you the money within 30 days of you sending us proof you paid that tax, after each payroll. Company: Is that your final offer? Elected offical: How about 95%?