Monday, July 2, 2007

Open for Business!?!?

Governor Joe Manchin's flunkies are thumping their chests today over a one cent reduction of the state's FIVE cent food tax. That's right, the state of West Virginia taxes its citizens five cents per dollar...ON FOOD. This is just one example of the Mountain State's Massachusetts-like penchant for taxation.

What is remarkable about this and many other levies (including a possible Morgantown city "user fee" that would require citizens to pay an employment tax for working but not living in the city) is that, in spite of this almost unprecedented taxation, the state still sticks by its new slogan - "Open for Business". This is a joke at best and an out and out lie at worst.

While Manchin and others pathetically cling to this reassuring motto, businesses continue to skip West Virginia on their way to Ohio, Kentucky, Virginia, and even Maryland. Quite simply, it is impossible to do business in the state and darn near impossible to live in the state. There is a $6 tax (completely independent of tags) per dog in Morgantown!

Ironically, the only time that the Mountain State was actually open for business was when turn of the century state politicians allowed coal and gas operators to secure over half of the available land and systematically rape West Virginia's natural resources while giving almost nothing back.

Unfortunately, the only industry that seems willing and able to thrive in West Virginia's oppressive business climate (the racetracks and casinos) looks a lot like the robber barons of the late nineteenth and early twentieth centuries as they systematically redistribute even more money from the pockets of the poor and middle class into the coffers of the state via a 35% profit tax.

Oh well, that's what you get when you elect one party year after year after year.

1 comment:

Anonymous said...

isn't it a FIVE percent food tax?

i didn't really get any information that addresses the business perspective of "open for business".

yes, there are some unusual taxes levied on things that aren't taxed elsewhere.

however, on balance, w.v. remains one of the cheapest states to live in.

the taxes and fees you note aren't really that unusual.

there are at least a dozen large cities that tax workers in their cities that live elsewhere an income tax. (cleveland and New York City for starters.) this is based on the naive notion that people will move into the city to save taxes. to counter this tax, workers that live elsewhere need only compile a list of all of the dollars that the city receives as a benefit of their presence. the local economy is amply rewarded by payment of parking, food and beverage, retail shopping, and even professional services.

unlike the work tax, the food tax does have and opposite effect on revenues. wherever there is an alternative market within reasonable distance, it pays to drive to ohio or pa or md, etc. to shop for groceries. the w.v. grocers are penalized for a tax that is essentially "at will".

the dog tax is questionable only
as it relates to the ultimate use of the tax collected. does it benefit dog owners or just get lost in the political mill? at least you can own multiple dogs in w.v., in many states, having more than 2 dogs requires one to obtain a costly kennel permit which permits inspection of the dogs' habitat and care.

i would gladly pay all of the taxes above plus some to take advantage of the ridiculously low property taxes and income taxes in the mountain state.

regarding business in w.v., none of the measures actually speak to why business won't come here.

w.v. likely is naive to the dramatic and costly steps that must be taken to attract business. it takes huge concessions and future benefits to the incoming business to even hope to become a finalist.

perhaps one thing w.v. can do that few other states can is to offer the aging and closed infrastructure left by steel, chemical, glass, and so forth for a token amount. this would end eyhesores while forcing a long term commitment to the state. these buildings and plants may look like rusted dinosaurs but they are strategically placed for access to rivers, railroad and everything but air travel. plus to recreate plants the size of those closed in w.v. would be literally cost-prohibitive.

let's prove that you can polish a turd.

uCLEVEmvhave