I originally wrote these words under another topic heading, as a reply to jerryab. I got so carried away (involved, caught up in thought) I ended up with enough words to justify using the reply as it's own stand alone topic.
How Republicans use tax incentives to pay companies for new hires?
Their way of doing that is on the front end. Republican led red state governments typically pay companies to stimulate their economies by offering them an up front tax break as a lure if they should choose to locate a job producing businesses in their state. The incentives normally include property tax abatements, income tax discounts --based on the number of people the company hires--, and free job readiness programs at cost to the state for the training of new hires. Such is what makes up a good part of why a company such as Boeing chose to build it's new assembly plant in South Carolina instead of Washington State, or elsewhere, and it is also why the film industry has flocked to Georgia making it now the third ranked state in the union, behind New York and California in the production of movies and film. As of last report it could become number one this year. Though such moves, in tandem with anti-union efforts, do tend to also help lower the salaries of those who work in such industries.
The drawback to such incentives are that while they do work to stymie the loss of state Revenue it is debatable as to whether or not they add new revenue to the state treasury. As the states continue to slash public services, privatize others, and raise fees and offer communities the opportunities to use local option sales taxes as a means of raising revenue to replace funds normally distributed by the state to do things such as building a new school.
Some states that have used such incentives have dropped them because of what some existing business say is a built in unfairness. Companies that have been doing business in the state prior to the incentives are paying the full rate of taxes and are demanding to have some of their taxes abated or expenses offset or else they may move out of the state, or country. It is a double edged sword of sorts.
So whether or not Republicans can use these tax tricks, incentives and lures, to say they have created more jobs and revenue, and be truthful about it, depends on whether or not the tax burdens of the average worker has been lessened and the job opportunities and workforce enhanced. Typically with such devices you gain on one hand and lose on the other. If you lose more on the other then the state typically discontinues the incentive programs. If you gain more on the one hand the state typically continues down the road with the incentives.
Even some blue liberal states, such as California, are starting to offer incentives to retain industry and/or attract new ones.
Example 1 ---> South Carolina:
"As details of the top-secret deal slowly trickle out, a (Charleston) Post and Courier analysis has found that the incentive package promised to Boeing is worth more than $900 million, at least double the highest estimate first circulated by state officials.
In part, that's because original estimates did not include county property and sales tax breaks."
Example 2 ---> Georgia:
Example 3 ---> California:
"Legislation to expand and extend incentives to keep film and television production in California passed a major milestone.
As expected, the California Film and Television Job Retention and Promotion Act of 2014 was approved by the state assembly Wednesday by a unanimous vote of 71-0."