Thursday, November 17, 2011

Killing Greenburgh’s Businesses

The Town has continued on a markedly deceptive practice of tax increases beyond the normal yearly increases our incompetent Supervisor normally invokes with each year’s budget. Our Town has increased and established new and more business-punishing fees meeting after meeting. And the Stepford Board’s logic for this is that it would increase revenue for the Town. It is this type of parochial mindset that causes many businesses as well as residents to leave the Town.

One needn’t travel to any unique location to see that our Town’s business community is in decline. This is especially true of our small businesses. The “too big to fail” businesses continue to receive subsidies, grants and bailouts. On the other hand, our small businesses receive more of our Supervisors attention by being taxed, albeit with more and/or higher fees (hidden taxation). How does this help Greenburgh be attractive to business? It doesn’t.  Westchester and New York State aren’t known for being business friendly. They have their own taxes and fees. According to The Paul, we don’t need to do anything for business because our corporate tax rates are low. Given that sentiment, why do we see so many vacancies throughout the Town?

Westchester County, Greenburgh and other communities are continually offering “incentives” to new businesses to come to the area by reducing or waiving taxes. And, they continue to offer incentives to established businesses once they get wise and simply threaten to relocate. That’s what recently took place with Pepsi, when they threatened to leave, the County leaders fell all over themselves to offer tax concessions and tax discounts for them to remain in Somers. Then all the politicians stood in line at the press conferences waiting for their turn at the open-mike event, claiming they have miraculously saved local jobs, that they brokered the deal, that they have the Midas touch and without them Westchester would crumble. The reality is they increased our residents’ taxes, whom are now forced to make up the difference. ABG must have missed that press conference.

If the local, county, state and federal governments leaders are making tax concessions to businesses not to leave for greener pastures such as North Carolina, it highlights that our taxes are too high. As we see in Greenburgh, The Paul may not raise taxes specifically on business as a tax, but with all the permits, inspections, fees, etc., that must be met just to hold, say, a sidewalk sale, its understandable why businesses are leaving. It also explains why we have a “gray economy”. That’s where people operate a business with little or no overhead, such as out of the basement or garage, working in a cash only environment. They pay little, if any taxes; don’t pay into Social Security, FICA and/or the other normal (read: crippling) taxes at every level. Can you blame them?

What can we do to make business survive, even flourish in Greenburgh? Avoid the big box stores whenever possible when there is a smaller, locally owned business that can provide you with the goods and services you need. Usually, the small businesses will have lower prices to be as competitive as possible. Shopping locally will work. These businesses contribute to the local parades, put posters and flyers up in their businesses for your schools’ bake sales and donate to different school, charitable and social organizations that we all work with. Unfortunately, you may have to pay to park. This is a no-brainer. Its too bad it’s not that simple for The Paul.

When local small businesses succeed, our communities succeed. Our storefronts represent “Main Street USA”. They show outsiders why they need to come to our local events, shop in our communities and perhaps even move into them. The Paul, however, is nickel and diming them to death with more and more fees. When we have businesses that are thriving, they will be joined by other businesses that want to ride that wave. It helps increase our tax revenue, which makes taxes less of a burden for everyone. More businesses translates to residents paying less taxes. And then we can waive the fees that are hindering our growth. Perhaps we can even offer free parking.

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