Regifting the Gift Clause: How the Arizona Constitution Can End Corporate Subsidies

Arizona cities are at war with each other in a high-stakes bid to lure such retailers as Cabelas, Cadillac, and Costco. To win the corporate spoils, cities offer incentive packages that include everything from land grants to a share of sales tax revenue. In this bidding game, however, the only winners are the corporations. Cities and taxpayers lose money, and existing businesses face unfair competition.

This phenomenon, however, is hardly new to Arizona. In the 1800s, the Arizona Territory e...