More and more people these days are grabbing the bull by the horns and starting their own businesses. Some times this is out of necessity after a lay off or firing, and sometimes it’s simply out of a desire to pursue a lifelong dream that was always, for some reason or another, out of reach.
The bad news is if you live in Jersey City and Newark, you’ll be among the 10 most expensive places in the nation to run a company, according to the Cost of Doing Business Survey by Claremont McKenna College in California. Other cities on the list include New York, Philadelphia, Chicago and San Francisco, according to The Star-Ledger.
Both Jersey City and Newark have placed in the top 10 for several years running, according to Brad Jensen, a researcher at the Rose Institute, which conducted the study.
According to The Star-Ledger:
The study found Jersey City has the highest property tax rate of all cities, at 6 percent, and a retail licensing fee of $40,000. Newark has a property tax of just a little over 1 percent, and a licensing fee of $2,300 — but it also charges a 1 percent payroll tax.
So what state is doing it right? Texas.
“Texas is a state that gets it,” Jensen said. “They understand that if you want to provide government services, you have to balance how much you charge in fees and taxes, otherwise you’ll end up strangling the golden goose.”
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