I was similarly confused by this...its not like its a Walmart superstore undurcutting the local mom-n-pop shop.
That said, perhaps the fear is "over-cutting" -- that HQ2 slurps up top talent from local tech businesses and overbids salaries. I can totally see that happening, especially with the only-handful of truly high-tech businesses in the Northern Virginia community. This is a bad thing short term and a good thing long term.
Small and medium businesses don't have the political clout to demand sweetheart deals like this, so they are at a disadvantage for both talent, and industry competition if applicable.
If you give so much away, the tax benefits cease existing.
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