Well all states do do it. We lost several opportunities because another city or state beat us on tax incentives. Baltimore (for whatever reason) was doing that to us many years ago; around the time the Cleveland Browns moved there.
To reiterate, some states are just better places to be than others. Up here, the weather is miserable much of the time. If it's not the snow, it's the rain, if it's not the rain, it's the humidity. There are times when businesses have to close or their employees can't make it to work.
So these tax incentives gives us the ability to offer something to level the playing field. And let's face it, you can't stop states from taxing less. The Constitution gives states the ability to run their own governments the way they see fit providing nothing they're doing is violation the US Constitution.
I suppose taxes aren't the only incentive. Has your state considered bringing back
droit du seigneur? I bet that would get the attention of some CEO's.
Only if they were Democrats.
At times taxes are the only incentive you can give. Don't get me wrong, there are advantages to living up north. Our water doesn't smell, we have less insects, at least here in Ohio, our cost of living is much lower than other states; especially the northeastern states. But our disadvantages are transcending as well.
I always joke with my fellow Ohioans when I say the only reason we're here is because our family and friends. Most agree with me. It's why we stay here. Without them, there are many other better places we would go, and some actually do.
My niece moved to Florida a few years ago, and she said she loves it down there. The problem is she misses us and her friends. She sulks at times, but with the internet today, you can have face-to-face conversations like you're actually in the room with that person.
But back to businesses. There is good and bad no matter where you go, so it all depends on the goals of the business. If you can accommodate those goals, then the business chooses your area to do business in, and that's a good thing.