Tuesday, September 09, 2014
California vs. Texas in fight to attract and retain businesses
When California rolled out a $750-million plan this year to attract and retain businesses, many aspects mirrored longtime perks used by Texas — where officials love nothing more than stealing jobs from the Golden State.
For more than a decade, Texas Gov. Rick Perry has touted the "deal-closing" Texas Enterprise Fund and other cash incentives as a "job-creation machine." A fifth of the companies that Texas attracted during the last funding cycle, in 2011 and 2012, were based in California.
Now California is firing back. In the state's first tax credit awards in June, more than 40% of the $29-million package went to companies that have gotten similar offers from Texas: Samsung, Petco and Amazon.
But as California embarks on a major effort to woo businesses, a decade's worth of experience in Texas raises questions about the wisdom of buying jobs from corporations with taxpayer dollars. More here.
Posted by Place Marketing Group at 10:13 PM