Free Minds & Free Markets

New at Reason: Creators Syndicate President Rick Newcombe on Why He'll Leave L.A. (Hint: Arbitrary and Dictatorial City Tax and Business Policies)

Rick Newcombe started Creators Syndicate in 1987. In 1994, the company won a case against the city of Los Angeles over its business tax classification. Newcombe writes:

Everything was fine until the city started running out of money in 2007. Suddenly, the city announced that it was going to ignore its own ruling and reclassify us in the higher tax category. Even more incredible is the fact that the new classification was to be imposed retroactively to 2004 with interest and penalties. No explanation was given for the new classification, or for the city's decision to ignore its 1994 ruling....

As long as City Hall operates like a banana republic, why is anyone surprised that jobs have left the city in droves and Los Angeles is teetering on the brink of bankruptcy?

Read all about this outrageous situation here.

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