Should cities be allowed to offer private companies economic incentives to relocate?

In November 2018 the online e-commerce company Amazon announced it would be building a second headquarters in New York City and Arlington, VA. The announcement came a year after the company announced it would accept proposals from any North American city who wanted to host the headquarters. Amazon said the company could invest over $5 billion and the offices would create up to 50,000 high paying jobs. More than 200 cities applied and offered Amazon millions of dollars in economic incentives and tax breaks. For the New York City headquarters the city and state governments gave Amazon $2.8…   billion in tax credits and construction grants. For the Arlington, VA headquarters the city and state governments gave Amazon $500 million in tax breaks. Opponents argue that governments should spend the tax revenue on public projects instead and that the federal government should pass laws banning tax incentives. The European Union has strict laws which prevent member cities from bidding against each other with state aid (tax incentives) in an effort to lure private companies. Proponents argue that the jobs and tax revenue created by the companies eventually offset the cost of any awarded incentives.