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Opponents consider the tax breaks to be corporate welfare and say that states are engaged in a race to the bottom, dangling ever-larger carrots in front of companies as they compete against each other to lure businesses. The result is states have to rely to a greater degree on personal income tax, sales taxes and other revenue streams, critics say.
I think corporate welfare is the worst of the two. I listened to a business associate try to explain that corporate welfare is a natural extension of Reagan's voodoo economics trickle-down theory. When you have to pay for corporate welfare, there is no trickle-down effect. The money leaves your wallet and goes upstream to big business. In theory, it's supposed to be the other way around!
Corporate welfare serves a vicious double-whammy. They either receive a large tax-incentive and remain in the US or they threaten to consider alternative options, such as outsourcing jobs overseas.
Mostly incentives to lure businesses turn out to be a good thing for the cities & towns that do the luring.