Wednesday, May 28, 2014

StartUpNY? Only politicians could make this up

Print Friendly and PDF So the problem in NY state according to our state government is high taxes.

Solution? Run a lottery for businesses in which the winners will pay no taxes! (Provided that you meet their criteria, of course! See http://startup.ny.gov/)

Will that help the business climate in New York? No.  As a matter of fact if these businesses do start up and pay no taxes, their existence will in effect increase the tax burden of the businesses already in place. Great solution!! That is, overlooking the fact that business "startups" usually don't generate a profit for a number of years, making the income tax issue kind of moot, and overlooking that a successful startup generally is at its smallest size when it is beginning, so the property tax issue isn't that big.

Spoiler alert: When all is said and done, these businesses are supposed to bring in new jobs. These people will presumably be voting in new York State. Whom do you think they will vote for? Perhaps the politicians who created these tax-free jobs for them? Remember, a business cannot vote but people can. The voting employees will be getting a meaningful tax break from day one.

What happens when the 10 years are up and the tax breaks are gone? Well, expect our creative politicians to have a solution! After all, they won't want these voters to follow the businesses out of state.


No comments: