In fact, here in Texas we do this tax abatements and subsidies all the time at the state, county and city levels of government and have successfully attracted some pretty big employers to the area with tens of thousands of jobs. Take a look at Texas' unemployment numbers of you doubt this works, also look at the state's budget surplus if you doubt it is good for the economy.
The problem is, you eventually run out of other people's money to give to corporations.
I live in Texas, too. That budget surplus, though. It has its downside: