In our review of the case regarding Amazon building a fulfillment center in South Carolina, we defined the term 'abatements', aka tax cuts. These are common incentives used by state and local governments to entice firms to locate to their area. While they have proven useful to help governments reach job creation goals, they aren't completely beneficial to all stakeholders involved. Which of the following did we identify as an unintended negative consequence of abatements?
1) Nearby governments may feel pressure to give other companies similar tax cuts
2) Local taxpayers may feel burdened by not receiving benefit
3) Increased vehicle traffic puts strain on local resources
4) Raises the cost of living in an area
