Will giving tax breaks help states increase employment?

The competition between states hoping to increase employment has heated up as more governors try to entice new employers or companies that are considering expansion.

Some U.S. governors have the advantage of increased tax collections that will enable them to offer everything from reduced personal income taxes, tax exemptions, real estate taxes, and lower corporate taxes.

Because of their improved budgets, nine governors have proposed tax incentives as the battle for more jobs continues.