State and local governments can regulate by offering operating subsidies to businesses, including

Question

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Tax breaks offered by state and local governments are typically subject to limitations imposed by the legislature. This ensures that the subsidies are only given to businesses that meet certain criteria and that the government can control the amount and duration of the subsidies. Unlimited tax breaks without any form of review or limitation would lead to abuse and could be seen as corporate welfare. Limited tax breaks subject only to county commissioners court limitations or city regulations may not provide enough oversight and could be subject to local biases or corruption.

State and Local Governments Can Regulate by Offering Operating Subsidies