Yes. And San Francisco helpfully illustrates it:
San Francisco’s Board of Supervisors has just given the fast-growing company [Twitter] a six-year holiday from the city’s 1.5% payroll tax for new hires — of which Twitter expects quite a few.
Good tax policy should strive for horizontal equity, meaning that similarly-situated taxpayers should face the same tax rate. Taxes that fail this test are unfair. They are also inefficient: companies and individuals end up changing their behavior in order to meet the demands of politicians and lobbyists instead of those of customers and shareholders. They also end up sinking resources into political and lobbying efforts to either keep the preferential treatment or to fight the preferential treatment that their competitors are receiving.
A better (read: more-efficient, more-equitable, and easier to comply with) route is to commit to a tax regime of low rates for all.