@ican711nm,
Boy you guys are tougher than I am.
I've been thinking on this and provided that the deal is completely transparent and overseen by a citizen panel, I just can't see that the problems that you see are a given. I have been thinking on it, however, and think certain ground rules must apply.
It has been a long standing practice that a company looking to expand and needing a new location will put out 'bids' for a suitable location. Those communities who want that business to locate in their town or city advertise to that company what they can offer: good schools, hospitals, cultural opporunities, proximity to major higheays, airports, and other public transportation, affordable housing, low crime rate, recreation, aesthetic beauty and pleasant climate etc. Of course they frequently sweeten the deal with discounted or free land and/or low or waived taxes.
The benefit to the community is obvious even if they do give the company moving in a break. Lots of jobs meaning lots of new customers for existing businesses and a bigger tax base for the city. I am unaware of any existing businesses that object to this practice. Again the deal must be transparent and enjoy wide community support.
So long as all cities/towns are able to make a pitch for the industry to come to their town, I can't see a problem.
Likewise, I can see a small town voting to bring new industry to town for all the same reasons mentioned above. They put out bids for a good business to relocate or expand in their town in return for discounted or free land and/or reduced or waived taxes. The company that can offer the town the best prospects for the town gets the deal.
As long as it is widely supported and transparent, how does this violate the principle of free trade?