I am not totally against tax subsidies to bring in new business to an area. Does it really cost a municipality to bring in jobs because they are giving tax breaks to a company to set up shop there? To say that it cost $XXX per job via tax breaks seems disengenious to me. Doesn't make sense to say that something cost them when they didn't have the tax revenue in the first place, and probably wouldn't have landed the jobs in the area without the tax subsidies. I could be misunderstanding how the whole thing works though.
What I don't like about it is that this practice seems inorganic to me, which is why it doesn't always seem to pay off. How about investing some of those tax subsidies in already established small to medium businesses so they can expand their operations therefore stimulating the local economy with jobs, increased tax revenue (based on increased productivity), and improvements in the current municipal infrastructure. Seems like it could raise the standard of living and employment levels for the community without the huge risk of a larger company pulling out after a couple of years.
Like I said, I may not be seeing the whole picture. Article gave me something to think about.