The city I live in, Rapid City, refused to give Walmart tax breaks for a new distribution center and has also blocked the building of a second Walmart store, for reasons similar to BananaRepublic’s complaints.
The city of Rapid City and the surrounding areas have lost perhaps tens of thousands of jobs because of it, due to the new jobs that Walmart would have created, as well as the new commerce and industry that would have been created.
The city DID approve such things for Cabela’s new store, while refusing to give Scheels a similar deal. (You don’t have to take my word for it, but you’ll have to look it up yourself.)
As long as cities and states charge sales tax and property tax, there WILL be competition for businesses between them. The Walmart distribution center ended up going to North Platte Nebraska, even though Rapid City was their preferred location.
So what if a city government cares enough about their people to give tax breaks to business to promote job growth? Obviously a lesson never learned by the city council here, nor by the various state governments or federal government. This explains job flight to China, India, Mexico and even EUROPE, where they have learned the lesson to try to ATTRACT business rather than tax it into the ground.
Congratulations to cities that care about their people enough to give Cabela’s, Walmart, Sheels and all other job producers a break.
Ideally, cities wouldn’t charge any company taxes, and neither would the federal and state governments.
It is double taxation anyway, since businesses in a free market society are owned by the people and the people are taxed enough already.