Saturday, January 29, 2011

Elaine Krewer on a little-noticed problem

But one that will become prominent as states attempt to lure businesses away from other states forced to raise taxes in order to save their budgets.

The Economic War Between The States

I am speaking of the economic battles states and localities wage against one another when they compete for new businesses via economic incentives such as tax breaks, regulatory exemptions, or taxpayer funded grants and loans that are offered only to specific companies.

Are there any solutions? I suspect not, as the states haven't been able to restrain businesses for the sake of the community.

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