How Cities Can Take Care of Businesses

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The Internet and globalization have both made it possible to operate a business from virtually anywhere and still serve a wide range of customers. Most firms no longer need to be located in downtowns or large financial districts.

This flexibility has made it easier than ever for businesses to leave cities that have an unfavorable tax and regulatory climate. American cities in decline are largely victims of their own failure to take a fresh look at how the economy continuously repositions itself in an information-driven, globally competitive world market, and respond with policies that encourage entrepreneurial investment, private sector growth, and local consumption of goods, services, and housing.


What are the best ways that city politicians can take care of the job-creating and tax-producing businesses that are at the heart of any flourishing metropolis? The shortest answer is to keep taxes and licensing requirements simple, fair, and predictable.


Cities with heavy tax burdens put themselves at a competitive disadvantage with more relaxed localities. Taxes always create disincentives for business growth and expansion. Cities with simple, limited tax structures are much more successful at encouraging business development. Local leaders should be aware of how various taxes can weigh down economic growth. These include:

”Business Taxes”. The higher the business tax burden