Giving a tax break to get a company to move to your state doesn’t cost you anything if not offering it means you get no new jobs.

Basic game theory: you should always defect, because you’re always better off. Yet the ideal outcome happens when nobody defects.

This is why the states should agree (or the Feds somehow impose restrictions) not to make these sorts of deals.

So what’s the incentive for governments to become more efficient, need less tax money and attract more business?

I like the fact that states can choose to compete for companies.

I’m not proposing to ban lower taxes, just company-specific deals like these. A state wants to have a more friendly business environment to attract companies? Great! Just don’t negotiate tax breaks for a single factory.