Archived: Editorial: Pile On or Reduce Taxes: Which is More Successful?


What a difference location can make to small businesses.

According to an article in the Wall Street Journal, many local cities, counties and states are planning their own local stimulus plans to revive their local economies.

Some are cutting corporate taxes, paying local residents to shop in their communities, reducing fees on new developments.

One city has even dipped into local coffers to create as many as 250 jobs in an effort to stimulate the local economy. The Journal reports that local governments have been searching for ways to help their people, including small businesses.

Here in California, however, the state, cities and counties are doing the exact opposite.

Communities hard hit by the economic downturn are now being asked to fork over higher state income taxes, sales taxes, license fees and probably very soon, higher employment taxes.

California has one of the highest unemployment rates in the nation, more than 10.1 percent.  Residents are losing their homes to foreclosures in high numbers — a 60 percent increase in foreclosures in Los Angeles County alone during the month of February. So why is it that our state government doesn’t appear to care about the hard time residents are having staying above water? As they strain business resources even more, can we expect more job losses and more foreclosures?

We guess we will have to wait and see which course of action dealing with this deep recession will see greater success: piling on or cutting taxes.

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