Well, it’s tax time again.
And that means that, once again, we have to write a check to New York because–well, because we have cash in the bank.
Yes, in New York, there’s a “capital tax” — a tax on money you have in the bank.
New York, apparently, wants to encourage companies to take as much risk of bankruptcy as possible, by raising or retaining as little cash as possible, so it taxes them on cash they have in the bank.
And we raised a whopping $3 million last summer, and we still have it in the bank. So that means we have to pay New York $10,000 of “capital tax” as punishment.
Never mind that we’ve created 45 new jobs in New York and that most of our employees pay taxes in New York. Never mind that, if we cut it to close to the line and went bust, all of these jobs and taxes would disappear. Never mind that we’re not exactly coining money around here.
(Yes, we were profitable last year, and that was awesome, but we didn’t make so much profit that $10,000 is a no-never-mind. In fact, if you want to know the truth, that $10,000 is 5X the profit we made last year. We’re really rolling in it…)
Don’t get us wrong. We’re not anti-taxes. We get that New York’s broke and needs all the help it can get.
But a CAPITAL TAX?
What is this? France?
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