I think that the fallacy is the zero sum game, and this is not a zero sum game. First, we have no idea how many CZ people are going to make the move to Little Rock, as skilled people are not easy to find. Second, what will be left at the KC location, unknown, may or may not keep something going there, based on political happenings, will they need another place to continue doing other things. No idea. Also, the tax breaks are exactly that, taxes that aren't paid, nobody else pays them, they are taxes that normally a corporation pays that are waived to a new outfit, sometimes for a certain number of years, so the new outfit can get it's financial feet underneath it to keep contributing money to the local and state economy. If the political leaders are actually offering cash bonus incentives to move in, yes, that is taxpayer dollars, but are they offering cash or are they offering discounts on things? Remember taxes are a percentage based of gross, and the politicians have to balance, if we offer incentives here, when will the company and it's workers begin repaying those incentives? When will the tax base outweigh the initial discounts and waivers? Being a percentage of gross, the company has to think, we take these offers now, with a clear expectation we will begin to either repay cash incentives or ramp up to proper taxation, will the profit margin be sufficient to maintain a multi million dollar investment in place? Will the quality and education of the work force be what we need, or should we, ( I would!), take serious measures to bring in an experienced work force who can train those needed to fill the new positions? What production loss will we suffer during transition and training, can we absorb it, will the tax incentives be sufficient to offset the substantial debt, bot transitory and permanent, i.e., attached to "things".
There is much more going on than meets the eye, and that is my layman's fast glance. Any company moving IN is a boon to the economy. Remember, workers get paychecks, and paychecks get spent.
