As long as we have a patchwork taxation system, we’ll have companies moving around for the best possible situation. Tax evasion/aversion shouldn’t be part of any business model, but, in these days of short term goals over long term plans- we see many such shortsighted moves (NCR to NYC and Atlanta?)
American Greetings Corp., the nation’s largest publicly held greeting card manufacturer, is exploring moving its global headquarters from Brooklyn to another community – maybe even out of state – with lower taxes.
In an internal memo sent to employees on Wednesday, the company said: “we are launching a study to consider whether or not we should move the company’s world headquarters to another location” because the City of Brooklyn last spring voted to raise the city’s payroll tax 25 percent, to 2.5 percent from 2.0 percent.
We saw Reynolds and Reynolds move to Kettering and win an instant .5% pay raise for non-Dayton residents employed at the firm long ago. It might not make much difference to you making $50K a year, but when you are earning $7mill like NCR CEO’s that’s big bucks.
It’s time to at least level the playing field locally- and have one local income tax county wide- with one collection agency. It would make business easier- and simpler. As to companies moving- let’s also stop tax-payer funded “incentives” and get back to sound business decisions- like how close to my workforce can I locate? A walk to work tax credit – would make a huge impact on stopping sprawl which costs our communities higher operating overhead due to the larger infrastructure footprint.
This argument about income tax has stopped the merger of Centerville and Washington TWP for years. They share schools- but, force the Sheriff to patrol the TWP- and cut income tax revenue from the Dayton Mall. It’s one more way we all get manipulated by a system that has sold out to the highest bidders.