Company relocations and income taxes

Detroit charges income tax to people that live and/or work in Detroit (double-whammy if you do both). There are only a couple of cities in Michigan that do this, and most of them are degraded, property-valueless cities that can’t get by on property taxes, I imagine (Detroit, Pontiac, Lansing [the capital]).

So, what does a company typically do for its employees when it makes them move? Is there generally any increase in compensation to offset paying a tax to a city you don’t really give a crap about (other than the cheap property that made your company move there)? The job market isn’t so bad here that the company couldn’t suffer a mass exodus.

Dang it; first paragraph got erased! Please prepend this to what you read above: