While I agree that tax incentives are a truly unwise undertaking for government entities, look at the difference. If Beauregard County in some southern state gives incentives to Totowatomasaki Motors to locate a plant on free land in Beauregard County, most of the workers will come from the area. If Detroit gives out incentives, the business which takes them has easy access to people in the metro area who might be more qualified or have a stronger work ethic.
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