Yep, cities, towns, even states can go "out of business" if they aren't viable. Forcing the matter with coercion doesn't doesn't really help though. In southeastern Missouri, there are counties where 70% of the people rely on government aid. These counties are so dysfunctional that the state has to subsidize most basic services because there's simply no profit in it for private vendors. Do you consider government keeping these communities afloat a good thing?
So the solution is not to try to bring in new businesses and keep the state subsidizing them?
Only under socialism or communism. In a free market, it's up to the people to maintain their own industry and wealth
No, because people cannot do that on an individual basis. That's why we have government officials, so they can collectively maintain a city or state on behalf of all the people.
When government gives specific people or companies exemptions from laws the rest of us have to follow, it's a blatant violation of equal protection. It's bad law.
If that were the case, all taxation is a violation of equal protection. What do you pay more taxes on, a can of soda or a can of beer? What do you pay more taxes on, a candy bar or a pack of cigarettes?
If these deals are so good for the state they should offer them to all companies, not certain ones picked by the state. You don't seem to understand the importance of keeping the government out of capitalism and free market. Or you just don't like capitalism.
Okay, so they offer the same tax rate to all the companies, and then the city can no longer stay afloat because they don't have enough money coming in. That's what you'd like to see?
Ok so these deals really aren't good? You want the state to make bad deals and make other companies pay for them?
Just those with all the lobbying do well?
Wait a minute....... if a city or state offers tax abatements to a certain company to bring business and hundreds or thousands of jobs there, and it doesn't effect the tax rate other businesses are paying, then what's the harm to those other businesses?
If I own Ray's antique shop, and I learn that a major operation is moving in which will bring in more consumers to our area, I think I would benefit from that.
Not only would I benefit from that, but when the city or town needs more tax revenue to keep things going, it's less likely they will be increasing my taxes because of the new revenue from the new business.
This is a business floor plan. Walmart moves into an area. Walmart is what's called an anchor store. Smaller businesses open up near Walmart to take advantage of Walmart's ability to draw in large crowds. I won't be paying anymore in taxes and Walmart will draw new customers that I never had before.
So I guess the question is, who loses when a city gives a business tax breaks?