richardhutnik said:
mrstickball said: Yes. As a business owner, there are a lot of things to consider. Its not just corporate taxes. It's regulations, the likelihood of government intervention, the intelligence of the population (smarter = better to hire), and taxes. Not all US states are the same. That is why businesses, when they can, will attempt to do business in the most favorable state(s). Some are better than others (e.g. Texas over Illinois), but still, the federal government plays a huge part which makes the US a pretty bad place to be if your business can be located anywhere you'd like. |
What I see has happened is that the issues involving business end up focusing mainly on one issue: tax rates. Communities, that don't really seem to have anything to offer (or don't feel it) attempt to cut tax rates to lure business. The end result of this is that there is a race to the bottom in funding government run services that help to support a community and sustain it. It is a commoditization of things that has communities competing on price. Even in this, I would question how effective enterprise zones would be to lure businesses, if they are in a place with high crime, drug use, and other undesirable elements. All this, to me, still looks like artificialness places on top of systems that won't change things. No matter how low taxes are, if there is an large population of uneducated people who can't even read or understand what it means to hold down a job, then they won't set up shop. This happens. In the Hudson Valley, for example, IBM sucked off so much labor, that manufacturers wouldn't relocate to the area, because of unemployment being too low. Then IBM leaves and the area still has not recovered. Tweaking tax rates won't fix this, nor even regulation. Maybe there needs to be more occupying of the area by people who can make a difference and affect things.
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That is true, but again, working to ensure any competitive advantage is better than stimply maintaining status quo.
Where I live, we've seen all industry leave. We used to have about 5 factories in town, and now have 1. The city continually does all that they can to require massive regulations, no tax exemptions, and are notorious for being difficult to work with. The result is a 13% unemployment rate, when the entire county's rate outside of us is about 7%. Every city around us has secured major new businesses and industries, while our city dies.
All because we sit and do nothing. The best strategy is a combination of a good workforce, sane regulations, and low taxes, but even having one is better than none.