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> see: literally every time some state gives a company incentives to build a plant or office You're conflating two things here, the subsidies are one issue but
by Spivak 2y ago
> see: literally every time some state gives a company incentives to build a plant or office
You're conflating two things here, the subsidies are one issue but the bigger issue is the ability for large companies to "shop around" states looking for the most favorable tax incentives. Our government shouldn't be bidding against ourselves.
- CamperBob2 2y agoOur government shouldn't be bidding against ourselves. Yes, it should, because that's how individual companies (and governments for that matter) find their optimal operating points. That is the explicit central dogma behind the United States' system of government. It works pretty well for the most part. If all the states had the same laws, policies, and taxes, there would be no need for federalism at all.
- Spivak 2y agoLooking for the most favorable tax climate is fine. The practice where states will roll out huge one-off incentive packages is where I take issue.