Where can you “start a tax-free business”?
New York State.
That’s what the Start-Up NY television campaign is telling folks — way down here in Virginia.
Recall that on Monday I bemoaned the “New York State Open for Business” TV ad campaign, which is spending $140 million to boast of numerous multi-million-dollar taxpayer subsidies to certain New York businesses, even while acknowledging a generally unfriendly overall business environment. (In fact, the Tax Foundation’s 2014 State Business Tax Climate Index ranks New York State worst in the nation, dead last.)
Now, Empire State government “has a new plan” — even newer than the “new New York” proclaimed by the previous PR effort. The newest Start-Up NY TV spot says unequivocally, “Dozens of tax-free zones all across the state. Move here, expand here or start a new business here and pay no taxes for ten years.”
Wow. No taxes. Sounds good.
But how will the state afford to deliver government services to these special tax-free businesses? Who will pay their share?
Of course, their employees will earn money and pay state income taxes. Oops. Actually, not so. The tax-freeness of this super-duper deal extends to the employees of these new or expanding operations, who can earn income free from state and local taxes.
So, the companies that have suffered long under the state’s onerous tax-and-regulation yoke, along with their heavily taxed employees, will continue to struggle — and even more so to pay for the new government-favored enterprises.
How fair!
This is Common Sense. I’m Paul Jacob.