Steve Marr.org

The tax code from the IRS encourages debt rather than equity. When a corporation earns money, they pay an income tax on the earnings. If earnings are distributed to shareholders, those dividends are taxed again as personal income. This represents double taxation and discourages dividends to investors.

Paul Caron posted a blog highlighting the ten states with the highest tax rates.  Use this link to read his blog: http://bit.ly/15ykPV1

The states are:
1.  New York
2.  New Jersey
3.  California
4.  Vermont
5.  Rhode Island
6.  Minnesota
7.  North Carolina
8.  Wisconsin
9.  Iowa
10. Maryland
 
Business decision makers choose every day where and how to do business. A state’s tax rate is one factor. In Arizona, we experience a steady stream of independent business people moving in from California. A key factor is the rising state and local taxes in California. Location makes no difference to these people.  They can work anywhere. I also have a similar choice.  I can move my phone and computer anyplace, any time. State governments collect taxes. Taxes on businesses and individuals are one of the costs of doing business. As taxes rise, some will depart if they can. Others prefer to enjoy the New York City lifestyle or the California beach, and continue to pay higher taxes. Still others will stay to remain close to friends and family. These are all valid points, but moving to save taxes is also valid.

When asked about paying taxes, “Jesus replied, “Then Jesus said to them, ‘Give to Caesar what is Caesar's and to God what is God's.’ And they were amazed at him.” (Mark 12:17, NIV) When considering where to do business, you can move into a different state to locate another “Caesar” who takes less in taxes.

This is not just information for business leaders.  States need to consider this when establishing their tax policy.

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I have written often about how new forms of media are pushing out older forms. Now, Nielsen will alter their method of rating TV viewership. The firm will launch a system to measure viewers who use iPads and broadband.

The story line is familiar.  A hurricane strikes.  An earthquake destroys buildings.  A tornado wipes out part of a town. Emergency responders rush in with aid. TV crews show us the damage and destruction. Early responders fill a need. When they leave, the long term issues for business owners begin.

When emergency and relief people rush in, many small businesses experience an increase in sales. Relief and construction workers buy gas, food, and supplies while on the job. Businesses may believe they are experiencing the start of a solid recovery.

Most small businesses, especially those with retail locations, get the majority of their business within a two mile radius.  I have asked several businesses to survey actual customers by location to determine how far they travel. The result confirmed that the two mile distance is a key factor.  As the distance increases to three to five miles, customer concentration drops much faster.

The Financial Times ran a story forecasting that 15% of shopping malls would close over the next five years.  The story is here: http://on.ft.com/WSz44j

I have written earlier of the trend away from retail shopping locations.