Question

13). Jack Daniels is expanding his family-run beer distributorship into Georgia or Tennessee. His parents began the business many years ago and now three generations of Daniels work in the family business. Jack will relocate the entire family (his parents, spouse, children, etc.) to either state after the move. What types of taxes may influence his decision of where to locate his business? What non-tax factors may influence the decision?

Answer 1

US taxes are levied by Federal, State and local governments (municipal) in the fields of sales, income, payroll, property as well as capital gains, etc. accounts to 24.8% of GDP in order to use the taxable fund for the nation building activities in the US nation. Every business firms has the duty of paying taxes according to their gained profit for every year accordingly. Many business individuals run the business on their own starting from the origin of three generations of Grandfather, Father and the Son. Such native business will have smooth reputation from the customers who had trading transactions right from the period of three generations doing same business.

As the point of transformation and relocating of the business from other state to one state, The Estate Duty and the Property Tax may influence the decision of one native businessmen to set his business to other states in the US. Every information of retail business are recorded in providing Employer Identification Number or Federal Tax ID. In that Tax ID the financial information and the situational factors, position of the business are backed in the data base for every local business firms. So if the business individuals who are doing business for more than three generations can submit their wish of relocating their business to other states. Each state has its own economic power for its development. So Federal government fixes the taxes accordingly with financial status of the people. So It is very easy to relocate the traditional business with simple taxation facilities provided by Estate Duty and Property Tax. Non-tax factors like low income, less productive sources, less per capita income will reduce the purchasing power of the consumers living in the state where the traditional business individuals wants to relocate their business in that particular state.