Missouri is not the only state trying to pick winners and losers. From today's Rome News-Tribune:

CARTERSVILLE — Despite the successes of 2006, economic development professionals say improved business incentives are needed for Georgia to remain competitive at attracting new jobs and investment.

Cullen Larson, executive director of the Georgia Economic Developers Association, brought suggestions such as allowing job tax credits and other types of tax credits to be applied toward a company’s payroll taxes. The credits now can be applied only to corporate income taxes, an area where some companies have no tax obligation or a tax obligation too small for the tax credit to be beneficial.

Hey, how about some tax credits for me? After all, I owe BOTH payroll and income taxes. Kidding aside, the last thing we need more tax credits to complicate the tax code and reward politically favored behavior. And it is especially perverse for an existing business to have some of its tax dollars go to subsidize a potential competitor.

Assorted tax credits, grants, and loans aren't the only schemes being used here. One of the newest "economic development" rackets in Georgia is Tax Allocation Districts (TADs)--developers get their taxes frozen at the value of the property at the beginning of a project because the incremental increases in taxes that would come from rising property values are rebated back to cover developers' construction costs. (Background here, albeit from a pro-TAD perspective.) But I shouldn't be so dismissive--my better two-thirds and I are thinking of adding a screen porch and outdoor fireplace to the McMansion. Maybe we should get our house declared a TAD.