&gt;Shouldn&#x27;t states be able to compete among themselves, in a free market fashion, in order to attract business development that is likely to pay huge dividends over the long term?<p>Sure, but that competition should be based on taxes that don&#x27;t discriminate for and against certain individuals and companies.<p>There is also an argument that allowing states to compete with each other just causes a race to the bottom. Tesla was going to build the factory anyway. The country as a whole is worse off is Telsa is allowed to negotiate away all taxes by forcing states to compete over it.