Election season approaching. What’s on your mind? Taxes?Ask local business woman Beth Proko of the Worcester Citizens for Business, who alleges to be the voice of Worcester businesses’ - all 108 of em, mostly commercial real estate holders.
WCB progenitor Beth Proko, owner of a used car lot, is out and about trying to convince folks what ails us all is the city’s high business tax rate is either hindering local business magnates from investing further or , scaring away potential investors. Well, you know what they say about used car saleswomen.
Folks real estate taxes ain’t the culprit. Here in Wusta the real culprit is the lack of smarts, experience, and capital. A real businessman makes no excuses when things go awry. He knows his business - when to adjust prices, cut costs, apply more elbow grease, and when to fold. God forbid our local business folks should break a sweat. Whining is easier.
So welcome to Worcester, MA, home of the whiners. It's an understatement to say WCB’s Beth Proko doesn’t get it - it’s not about taxes, its about business management. So one has to question the veracity of her (sole) argument – taxes on businesses are evil.
Taxes are only a measly 3.5%/$1,000 of real estate property values. If you’re a used car dealer like Beth Proko & Co., there’s not a whole lot to tax. Personal property taxes are miniscule too – just a couple chairs and a desk. Yeah, let's be generous, give Beth Proko a tax break - what's she would do with the extra $100 a year? Create a job?
In fact Proko should be arguing for a reduction in state (8.8% max) and federal taxes (35% max), whose impact is considerably greater than the city's tax 3.5% on her P&L. For some unknown reason that doesn't click with her. Path of least resistance?
In fact Proko should be arguing for a reduction in state (8.8% max) and federal taxes (35% max), whose impact is considerably greater than the city's tax 3.5% on her P&L. For some unknown reason that doesn't click with her. Path of least resistance?
What Beth Proko won't acknowledge in this controversy is that business costs (health insurance, business insurance, purchases, utilities etc.) have been rising rapidly - more than taxes in fact. She doesn't have an issue with that, although they make up a larger percentage of her total business costs than the couple % points of real estate taxes. Folks we’re talking about a used car saleswoman selling local politicians a defective bill of goods.
The real question is whether city hall politicians understand economics or business management to make a competent decision. The short answer is no.
The real question is whether city hall politicians understand economics or business management to make a competent decision. The short answer is no.
There are no entrepreneurs or business magnates among them. Mayor O’Brien, in a former life was an office manager. Councilor Toomey a school teacher. Councilor Clancy a school teacher. Councilor Haller a customer serve rep. Joff Smith insurance salesman. Toss in a couple government clerks and a couple small town lawyers. They’re making decisions on issues that they have little or no idea about. So let the politics begin.
You’ve heard, it takes money to make money. In other words, it takes big companies to create jobs. Verizon, NatGrid, St. Gobain, UMass, Hanover etc., those companies are the real economic engines, not some two-man used car business, apartment building owners, or insurance salesman. Or an events guy. They add no value to the economy. But they do have a right to squawk. And that they do a plenty.
Taking it a step further. What about the video games development center idea before the council? How’s a rinky-dink school like Becker College (pays no PILOT) or WPI (pays PILOT) gonna boost Worcester’s tax base by graduating a handful of 22 year old's with no experience. That's gonna attract video game developers to Wusta? As a video games business, would you hire recent grads? No you wouldn’t - makes no economic sense. It takes years before they add value. What business can wait that long? Business goes where the talent is. Unfortunately Worcester ain’t got any.
And how is it that Rick Rushton & Committee thinks giving video developers tax breaks is gonna make Wusta the video-games capital of whatever? Federal tax law already gives the industry breaks other industries would die for. And yet many don’t make it. Many even renege on their tax deals - pocketing the cash and high tailing out of town. MA has its share of deadbeats. Wusta too.
Ask yourself this question. Why should you shoulder the business risk of people like used car saleswoman Beth Proko? The fact is, the Prokos pay a pittance into the city treasury. How many jobs have the Proko's businesses created?
Or what about the likes of Jordan Levy who's bankrupted more than his share of businesses, spreading propaganda that lower taxes will kick start an economic boom in Wusta. I wonder if he knows how many new businesses setup shop in Worcester in 2009, 2010, and 2011? Or even the bankruptcies. If he did any argument for a rate cut is disingenuous. Remember in 1984, during Levy's watch, the dual tax rate was implemented. Jordan Levy can do all the dog-n-pony shows he wants - his credibility is a joke.
Folks, this is not a question of building a future for yours and mine, but a transfer of wealth - you pay more, they pay less - from your pocket to theirs. Giving businesses a tax break will not make Worcester attractive to investors or create jobs.
The reality is, there is absolutely no proof it will. I'm not gonna bet my money/vote it will. They made the bet, let them live with the consequences. If it succeeds, fine - good for them. If it fails, for which they always have somebody but themselves to blame, don't go looking to me to bail them out.
Or what about the likes of Jordan Levy who's bankrupted more than his share of businesses, spreading propaganda that lower taxes will kick start an economic boom in Wusta. I wonder if he knows how many new businesses setup shop in Worcester in 2009, 2010, and 2011? Or even the bankruptcies. If he did any argument for a rate cut is disingenuous. Remember in 1984, during Levy's watch, the dual tax rate was implemented. Jordan Levy can do all the dog-n-pony shows he wants - his credibility is a joke.
Folks, this is not a question of building a future for yours and mine, but a transfer of wealth - you pay more, they pay less - from your pocket to theirs. Giving businesses a tax break will not make Worcester attractive to investors or create jobs.
The reality is, there is absolutely no proof it will. I'm not gonna bet my money/vote it will. They made the bet, let them live with the consequences. If it succeeds, fine - good for them. If it fails, for which they always have somebody but themselves to blame, don't go looking to me to bail them out.
So let the games begin!
