Everyone knows that Republicans have been in the back pocket of big business for years. They don't need a special name. They are Republicans - the party that says industry and business profits are more important than the little guys. Tax breaks for the wealthy are more important than education. The republicans have consistently shown they are anti-tax and anti-regulation when it comes to big business. And naturally these business exploit every tax code in the book to minimize the taxes they pay. On paper we have one of the highest corporate tax rates in the world, yet in reality, thanks to all the loopholes, corporations pay a rate much less than many countries like Japan, Germany, Canada, China, and others. These loopholes cost our country billions each year. Some major corporations don't pay a dime of taxes, yet have record breaking profits. This are essentially government subsidies in the name of economic development. Kind of stupid when you think about it. We're basically encouraging companies to game the system.
Targeted benefits encourage companies to game the system. In 1993, IBM caused a rapid increase in local unemployment by laying off 7,000 people in upstate New York. Seven years later, the government declared IBM's location an enterprise zone, a label bestowed upon high-unemployment areas in need of revitalization. Combined with additional subsidies, this earned IBM $659 million in benefits. By arguing that they are important for the state economy, large companies in particular can receive benefits to invest more or expand their workforce.

Targeted benefits also encourage excess lobbying and corruption. When defense contractor Raytheon threatened to leave Massachusetts in 1995, the state didn't respond with offers of incentives, so Raytheon paid a lobbying team to organize a public-relations campaign. One message was that the state's "defense initiative" would save 117,000 jobs. The governor soon offered Raytheon $20 million in tax cuts, labeling the policy a "jobs package."