Don Peebles, Peebles Corp CEO, is worried about the Senate and House tax reform plans currently on offer.
…the GOP tax bill will have a catastrophic impact on New York City, leading to a mass exodus of business owners and entrepreneurs.
State income deductions and the local pressure on taxes that [Mayor Bill de Blasio] is calling for, an increase in taxes on millionaires and a mansion tax increase. I think that’s also going to be hard on real estate[.]
Peebles said the financial capital of the world is becoming more of an anti-business environment with high taxes and a diminishing quality of life, forcing entrepreneurs and businesses to seek opportunities in other states.
“No deductibility of state income taxes and New York is one of the top three highest-taxed states in the country, and then when you add the New York City tax implications on it, it can be as high as 17%. I think it’s a pill that people are going to have difficulty swallowing[.]”
“We have to impose some discipline on state and local governments, and I think responsible governors and mayors will do that,” Peebles said.
Indeed. Instead of whining about a national-level tax plan that’s good for the nation as a whole, maybe folks in these usurious tax States, including their Senators and Representatives in Congress—especially them if they’re responsible—ought to spend a measure of that energy on working to get their State and local taxes lowered.
If businesses can’t function in a tax jurisdiction without subsidies for those taxes, they should leave; they owe it to their owners and customers, and they have no obligation to stay.