circle of life, LA style
The clowns who run Los Angeles don’t know much, but they do know how to run businesses out of town with excessive regulation and high taxes.
Los Angeles has a national reputation for hostility to business — and it’s getting worse. Recent business surveys by Kosmont & Associates, a private consulting group, and the Rose Institute at Claremont McKenna College rank the city as the second most expensive in which to do business in California.
Larry Kosmont, co-author of the Kosmont-Rose Institute report, says business costs in L.A. average between 2 1/2 to five times those of more business-friendly cities.
For instance, a $10-million office or retail operation pays about $59,000 in annual utility taxes and license fees to do business in L.A., compared with $9,300 in Pasadena, $904 in Burbank and zero in Rosemead.
So by moving a couple miles, from LA to Burbank, a retailer can save $58,096 annually, just in taxes. Unlike politicians, businesses are rational so they split town to the tune of 100,000 jobs lost since 1995.
What to do? Why, empanel a panel of the same types who created the problem. It’s the circle of life: create problems, then hire yourself to fix them.