For too long, politicians have gotten mileage out of touting race-to-the-bottom tax "incentives" to woo companies into setting up shop within their state's boarders. These offers are unsustainable and create an uneven playing field within the state, making economic growth uncertain and the market less predictable (see Casey's post below for an example).
At long last, people are starting to wise up to the fact that cutting every tax, reducing every service, and breaking every union, can cause a lot of problems and actually make a place uncompetitive and unprepared for global competition. Follow this link for just a part of the story.