To the Editor:

Recently New York State has been running a series of TV ad's touting their "tax free zones" for new business start-up's. The pitch is "no taxes for 10 years". Given New York has been one of the highest taxed states in the nation for decades let's look at the real implications of this program.

If you are currently running a business in one of these "tax free zones" you are put at a significant competitive disadvantage as a result of this type of tax policy. Often times profit margins alone are no more than the taxes a business pays. You end up with businesses who labored for years, often times making little or no profit in the early years now competing alongside new businesses given this significant advantage, bestowed upon them by elected officials who created the economic drag in their economies by excessive taxes (and spending) they now want to remedy . It is as if you seek advice on fire prevention by the same arsonist who burned your building to the ground to begin with. I can only imagine how existing businesses in New York must feel having to sit and watch after years of hard work and sacrifice now be forced to compete with this economic nonsense.

It explains why taking tax policy out of the hands of elected officials, to the extent possible must be done. Increasingly polls are finding growing support for elimination of income taxes and sales taxes, replaced by either flat tax or consumption taxes. I came to the conclusion years ago the Tax Code is nothing more today than the currency of elected officials, even at the local level. They use it to reward their political patrons, and in attempts to jump start economies they stalled themselves with their flawed strategies and high taxes, to begin with. It might also help to examine the states that have experienced declining populations the last 10 years. Hint…. The correlation between population decline, and individual states GDP has been clearly linked to their tax rates. Anyone surprised?

Bob Shannon

Central Garage