But the race to offer sweeteners to corporations is raising questions about whether they are worth the cost. South Carolina, where the unemployment rate rose to 11.1% in August, announced last week that tire maker Bridgestone would be eligible for several million dollars in tax credits if it fulfills plans to create 850 jobs at a new plant. Maryland is looking at expanding benefits for biotechnology and research and development groups, while Missouri's legislature is considering a $6 million program to keep jobs from decamping to neighboring Kansas. In the New York metropolitan area, competition between New York and New Jersey has generated millions of dollars in subsidies to businesses. Critics, however, question how much cities and states benefit from what they say is mainly a reshuffling of the existing workforce rather than net job creation in the region. "Generally such moves involve just moving jobs around," said James Parrott, chief economist of the Fiscal Policy Institute. "Companies play one
By the Financial Times ( Financial Times) -- As U.S. states jockey to attract jobs to push down high unemployment rates, companies are benefiting from a host of tax breaks and other government-funded incentives.