Every year, American cities and states spend up to $90 billion
in tax breaks and cash grants to urge companies to move among states.
That’s more than the federal government spends on housing, education, or
infrastructure. And since cities and states can’t print money or run
steep deficits, these deals take scarce resources from everything local
governments would otherwise pay for, such as schools, roads, police, and
In the past 10 years,
Boeing, Nike, Intel, Royal Dutch Shell, Tesla, Nissan, Ford, and
General Motors have each received subsidy packages worth more than $1
billion to either move their corporate headquarters within the U.S. or,
quite often, to keep their headquarters right where they are. New Jersey
and Maryland reportedly offered $7 billion for HQ2, which would be the biggest corporate giveaway in American history.
these deals take scarce resources from everything local governments would otherwise pay
Absolutely not the way this works.