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RMS' Bio | The GNU Project
Corporations play one state or city against another to extract tax breaks. They threaten to move the plant here or there, and get different localities to bid against each other with tax reductions. The burden falls on the rest of us.
I have a proposal for how to solve this problem. I think the states should increase their bargaining power against companies by forming a union. We could call it the "United States of America."
Here's how it would work. All the states would agree to be bound by a rule that when a company considers locating a facility in more than one place, none of those jurisdictions can offer it a tax break without the consent of all the others. Any jurisdiction that believes a company is considering another location could make a complaint under this requirement. If the company then chose a different location, and got a tax break there, it would be fined twice the amount of the tax break and the fine would go to the jurisdiction that made the complaint.
Of course, the states already have a so-called union. Too bad it sold out to the companies.