I think you meant "companies" and not "states". Problem is it becomes a bidding war that causes states to forego tax revenue with ZERO recourse if that company

I think you meant "companies" and not "states". Problem is it becomes a bidding war that causes states to forego tax revenue with ZERO recourse if that company decides to pack up and move somewhere else. This is especially true of companies that are not bound by development costs (e.g., Amazon warehouse vs. a semiconductor fab). Several New England state economies are fucked because they gave away tons of money in tax breaks hoping increased sales tax and income tax (on workers for those companies!!!) would offset the tax giveaway. E.g., CT is fucked for this very reason. Eventually the state has no recourse if the company changes its mind. Go look at what's happening with Foxconn's multibillion dollar scam in Wisconsin. Or Hillsboro oregon where intel gets 30 years without paying taxes. (Granted, Intel can't pack up and move easily because they invested 10's of billions in a big ugly fab that pollutes [see the "waivers" they "negotiated" to allow them to continue dumping fluorine emissions to avoid costly fab retrofits]). One solution is to allow states to sue if a company breaches contracts. But many states are just piss poor and cannot afford to take on a trillion dollar company (Amazon, Facebook), or a company from another country (Foxconn). Another solution is to actually tax corporations federally, since the government already redistributes blue-state wealth to red-state welfare. Warren has a great idea: tax companies on their SEC revenue CLAIMS rather than their IRS filings, which tend to differ by billions.