Honestly, because it's a race to the bottom. On top of that, there have been many instances of companies negotiating massive tax breaks only to relocate again after a few years.
Those tax dollars are better spent making the city more attractive to people and improving the universities. This will provide for more organic growth through startups founded by people anchored to the city by their social network.
I could see why a city wouldn't want to pay real money and then have the company move, but what's the problem if they agreed not to tax Amazon and then Amazon relocates?
Those tax dollars are better spent making the city more attractive to people and improving the universities. This will provide for more organic growth through startups founded by people anchored to the city by their social network.