In a crippling blow to Concord’s consumers, the city’s voters, on November 2, elected to raise Concord’s sales tax from 9.25 percent to 9.75 percent. The new tax starts on April 1, 2011. In raising taxes, voters bought the phony argument that Concord needs more money. If Concord, instead, had reduced the number and compensation of its municipal employees, then no additional taxes would have been needed. But Concord overpays its employees. Now see the consequences:
My firm, Biomed Inc., spends over $2 million annually in Concord. Biomed’s sales-tax bill, in April 2011, could reach $195,000. In March 2009, the sales tax in Concord was 8.25 percent. The tax on $2 million worth of taxable purchases was $165,000.
Thus, between March 2009, and April 2011, my company, if it continues to do business in Concord, will pay $30,000 more in sales tax.
That $30,000 could be used to hire someone who needs a job. Lost jobs is the cost of Measure Q. And it will get worse as every business in Concord faces the same dilemma…pay more taxes to support a bloated city government, instead of putting people to work; or leave the area.
To avoid higher sales taxes, Biomed Inc. will shop in places other than Concord. And if the tax burden becomes even higher, I shall move my company to another state or country. The result: Jobs, in Concord, will be lost.