Tools for Taking On the Corporate Subsidy Machine: Ban Intrastate Job Piracy
While states expend resources attempting to poach businesses from one another, municipalities within states often do the same thing. For example, Panasonic received more than $100 million to move its headquarters nine miles from Secaucus, New Jersey, to Newark, New Jersey. Billtrust received $12 million to move five miles from Hamilton, New Jersey, to Lawrence, New Jersey. Fidelity Security Life Insurance received $7.5 million to move about a mile within Kansas City, Missouri. These moves simply shuffle economic resources around within a state, producing no new economic activity. They merely increase the opportunity for corporate rent-seeking and political corruption, as corporations play city councils and state economic development officials against each other.
About 40 states already ban intrastate piracy in at least one of their corporate incentive programs.Those bans should be adopted across the board.
Model bills: HB0211, Illinois, 2021
 Bagli, Charles V., “Christie Leaning on Tax Subsidies in Hunt for Jobs,” The New York Times, April 4, 2012, https://www.nytimes.com/2012/04/05/nyregion/christie-gives-new-jersey-firms-tax-breaks-for-short-moves.html.
 Rojas, Cristina, “Company gets $12M in tax credits to move 5 miles away,” NJ.com, Aug. 23, 2017, https://www.nj.com/mercer/2017/08/company_gets_12m_in_tax_credits_to_move_headquarte.html.
 Davis, Miranda, “Kansas City gives $7.5 million tax break to Fidelity Security Life for new offices on prime real estate,” KCUR, Dec. 10, 2021, https://www.kcur.org/news/2022-01-04/kansas-city-gives-7-5-million-tax-break-to-fidelity-security-life-for-new-offices-on-prime-real-estate.
 LeRoy, Greg, Kasia Tarczynska, Leigh McIlvaine, Thomas Cafcas, and Philip Mattera, “The Job Creation
Shell Game: Ending the Wasteful Practice of Subsidizing Companies that Move Jobs From One State to Another,” Good Jobs First, Jan. 2013, https://www.goodjobsfirst.org/sites/default/files/docs/pdf/shellgame.pdf.