Caterpillar to move work from Joliet to South Carolina
Step one. Lie and get a tax cut. Step two. Sneak to another state and open up another plant using cheap labor. Step three. Using the cheap workforce you begin shifting more and more production there, leaving the original plant in a state of unproductive activity. Step four. Begin layoffs claiming work slow-down. Step five. Close the plant, state left holding the bag after giving away tax-cuts for a company that had no intention of staying.
It will happen. Governments rely on tax revenue. Tax cuts deprive governments of revenue. Hence, governments cut services that are provided to the people it serves. You know, police, fire, etc, etc, etc. As any cost rises, governments and people make adjustments and do one of two things. Increase funding in critical areas, and cut funding in wasteful ones. Giving tax cuts to companies that have no intention of staying in your state is one of those waste.
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