We have all seen cases of major corporations acquiring tax free status in certain states in return for opening a new facility within that state bringing in jobs that inturn provide taxable income to the local infrastructure. However, this system is heavily abused as well as not available for all businesses, especially small businesses.
I propose a tax free status program for ALL businesses, with a few stipulations.
- The tax free status is only applicable for the first 3 years of establishing a NEW business. Existing/established businesses (more than 3 years old) looking to expand or relocated can qualify for 1 year of tax free status.
- There must be concrete evidence that the impact of your business will offset the tax burden. I.E. if the estimated taxes you will owe for the first year are $10,000 and with the taxable income of employing contractors, staff and the purchasing of materials, equipment and supplies equal or exceed $10,000.
- If you do not meet your required tax burden estimate you will owe taxes for that year and will be dropped from the program.
I believe this would encourage more American businesses, a influx of small businesses, a lower rate of failure for new businesses as well as encourage the employment and implementation of local contractors and staff.