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Friday, July 10, 2009

And you wonder why businesses want to leave Los Angeles ??

"Maybe one has to pay to do business in Los Angeles ??"
For those who are well-versed with the inner-workings of the Journalism Community, then you have had some sort of dealings with Creator's Syndicate, which represents hundreds of writers and columnists.
Rick Newcombe, Founder and President of Creator's Syndicate has a great tutorial/ opinion piece, on our local business climate, that all in City Hall and the likes of local Chamber of Commerces should read.
Posted here in full.
"If New Yorkers fantasize that doing business here in Los Angeles would be less of a headache, forget about it. This city is fast becoming a job-killing machine. It's no accident the unemployment rate is a frightening 11.4% and climbing.
I never could have imagined that, after living here for more than three decades, I would be filing a lawsuit against my beloved Los Angeles and making plans for my company, Creators Syndicate, to move elsewhere.
But we have no choice. The city's bureaucrats rival Stalin's apparatchiks in issuing decrees, rescinding them, and then punishing citizens for having followed them in the first place.
I founded Creators Syndicate in 1987, and we have represented hundreds of important writers, syndicating their columns to newspapers and Web sites around the world. The most famous include Hillary Clinton, who, like Eleanor Roosevelt, wrote a syndicated column when she was first lady. Another star was the advice columnist Ann Landers, once described by "The World Almanac" as "the most influential woman in America." Other Creators columnists include Bill O'Reilly, Susan Estrich, Thomas Sowell, Roland Martin and Michelle Malkin -- plus Pulitzer Prize-winning political cartoonists and your favorite comic strips.
From the beginning, we've been headquartered in Los Angeles. But 15 years ago we had a dispute with the city over our business tax classification. The city argued that we should be in an "occupations and professions" classification that has an extremely high tax rate, while we fought for a "wholesale and retail" classification with a much lower rate. The city forced us to invest a small fortune in legal fees over two years, but we felt it was worth it in order to establish the correct classification once and for all.
After enduring a series of bureaucratic hearings, we anxiously awaited a ruling to find out what our tax rate would be. Everything was at stake. We had already decided that if we lost, we would move.
You can imagine how relieved we were on July 1, 1994, when the ruling was issued. We won, and firmly planted our roots in the City of Angels and proceeded to build our business.
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.
Their official position is that the city is not bound by past rulings -- only taxpayers are. This is why we have been forced to file a lawsuit. We will let the courts decide whether it is legal for adverse rulings to apply only to taxpayers and not to the city.
We work with hundreds of outside agents, consultants, independent contractors and support services -- many of whom pay taxes to the city of Los Angeles. This spurs a job-creating ripple effect on the city's economy. Yet I suspect many companies like ours already have quietly left town in the face of the city's taxes and regulations. This would help explain the erosion of jobs.
Regardless of the outcome of our case, the arbitrary and capricious behavior of some bureaucrats is creating a lose-lose situation for everyone involved. If we win in court, the taxpayers of Los Angeles will have lost because all those tax dollars will have been wasted on needless litigation.
If we lose in court, the remaining taxpayers in Los Angeles will have lost because their burden will continue to swell as yet another business moves its jobs -- and taxpayers -- to another city.
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?
As it appears in today's Wall Street Journal

Wonder if the likes of LA's Chamber of Commerce Gary Toebben, David Fleming or VICA's Stuart Waldman will care to comment on this great dissertation regarding the negative climate for businesses in Los Angeles ??

Your thoughts...............................

**Newcombe was just on the Sean Hannity Radio Show. He was not afraid to mention the name of the city bureaucrat "Ed Cabrera" who he described as being "Out of Control", in regards to enforcing city edits.

Newcombe also mention that he talked to someone in the Mayor's Office, a "Gabriel" who stated that it was the City Attorney Office who was enforcing these actions against his firm.

Lastly, Hannity pledged to get Newcombe and Mayor Villaraigosa on his show to discuss this issue........, another chance for Mayor Villaraigosa to embarrass himself and the city on a national show.

**Newcombe is currently on the "John and Ken Show" (5 PM hour). He stated to them that he is on the hook for "hundreds of thousands" of dollars. Here is a good spot for City Attorney Carmen Trutanich to review this case and make any corrections in the interpretation of the tax codes.

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Anonymous Anonymous said:

How is representing professional writers a retail and wholesale operation and not a professions and occupations class? Just asking.

July 10, 2009 1:10 PM  

Anonymous Anonymous said:

red spot has no idea what he is talking about, 110pm. Par for the course on this blog.

all those words and zero clarity

July 10, 2009 1:14 PM  

Anonymous Anonymous said:

Sounds to me like Newcombe didn't contribute enough to someone's campaign.

July 10, 2009 1:18 PM  

Blogger Red Spot in CD 14 said:

Ed Cabrera Tax and Permit Division Chief, City of Los Angeles ??

July 10, 2009 2:05 PM  

Anonymous Anonymous said:

"For those who are well-verse with..."

DAMN IT, Spoot, you're KILLING me.

Buy a G-D new computer that has a WORKING "D" key, or was your middle finger amputate(d) during the war?

. . . I'm one of those barely hanging-on, less-liberal types in CD 14, and I DO sometimes want to believe what you say, but I just CAN'T force my high-school-matriculate(d) mind to accept ANY analysis from someone who HAS NO SENSE OF "TENSE" and NEVER ends words with a "d" when its about something that's ALREADY HAPPEN(ED)!!!

I actually WANT to be a believer sometimes and I'M DYING from the expose(d) ignorance. What do you suppose the middle-roaders and the elite libs think of your illiterate gibberish?

I'll tell you what they think... "MAN, are those conservatives STOOPID, or what!"

You're absolutely the best advertisement for staying in college and letting the rabid socialists at university brainwash you . . . well, since GW!

I just refuse(d) to read the rest of this after I got to that in the first sentence.

You have kille(dddddddddddd) me!

July 10, 2009 2:35 PM  

Anonymous Anonymous said:

Red Spot, have you ever met Crazy Susan from Cypress Park?

You'd make such a lovely couple. She hates Reyes even more than you hate Huizar. Between you two, you could corner the market on council-bashing in Northeast L.A.

Oh, that is, unless she meets Mr. Carreon from El Sereno, first. That might be an even better match.

July 10, 2009 2:50 PM  

Anonymous Anonymous said:

If you don't want to pay the LA City business tax, move to adjacent LA County. They have no business tax. Maintain a mailing address and main office in LA County and you won't have to deal with the LA City tax.

July 10, 2009 5:02 PM  

Blogger Red Spot in CD 14 said:

To 1:14 PM

I sincerely appreciate your objective observations.

So in an token of my thanks, I give you a "d", in proper case.

Thanks for your thankless task of being Red Spot's "Spoll Checker".

Great weekend to you and your family.


July 10, 2009 5:08 PM  

Anonymous Anonymous said:

"So in an token of my thanks"

Why didn't you try harder in English class, Red Spot?

July 10, 2009 5:44 PM  

Anonymous Anonymous said:

Sean Hannity? Why in the world should the Mayor of Los Angeles appear on the Sean Hannity show? Who the hell is Sean Hannity?

July 10, 2009 5:51 PM  

Anonymous Anonymous said:

Rad Spit can't tell time either, apparently.

It wasn't "1:14" that talked about the lack of letter "d's" it was the "2:35"

July 10, 2009 5:55 PM  

Anonymous Anonymous said:

You Villaraigosa interns truly are wasteful of comment space. Go back to your dormitory and drink some bong water. Then throw it up, sit in your vomit, and think about why you are being punished. Bad intern.

July 10, 2009 8:56 PM  

Anonymous Anonymous said:

I'm not a Villaraigosa intern. I'm a businesswoman in the private sector and I realize I probably make too much sense to be reading this blog.

July 10, 2009 9:49 PM  

Anonymous Anonymous said:

8:56, tell us how you REALLY feel!

July 11, 2009 12:37 AM  

Anonymous Anonymous said:

Yesterday imbecile, gang banger lover bimbo Janic Hahn is now jumping on the bandwagon. Seems AEG told her to ask for the bill LA made on people coming to LA for memorial instead of making AEG pay up. Local media except talk show didn't report AEG campaigin donations to Mayor and city council members. We have the worst local media in nation

July 11, 2009 6:57 AM  

Anonymous Anonymous said:

I noticed the cops in caption. These assholes use cops for anything they can knowing that cops hate politicans especially the ones who have burned them in the media like Antonio, Huizar, Reyes, Bitter Bernie, Hahn. Hey Red Spot you're getting a new station and there's bets among copers the asshole Huizar who helps OG Hazard gang bangers shows up.

July 11, 2009 7:56 AM  

Anonymous Undocumented American said:

"We had a dispute with the city over our business tax classification. The city argued that we should be in an "occupations and professions" classification that has an extremely high tax rate, while we fought for a "wholesale and retail" classification with a much lower rate."

Pardon me for not understanding the nuances of the City of Los Angeles Business Tax Code, but why should "wholesale and retail" have "a much lower [city business tax] rate" than "occupations and professions" which "has an extremely high tax rate"? What qualifies as "wholesale and retail"? What qualifies as "occupations and professions"? Evidently the difference is so great it is worth "invest[ing] a small fortune in legal fees over two years,...in order to establish the correct classification"?

Yeah, the City Attorney's Office should be the one to explain all the subtleties of the City Business Tax.

July 11, 2009 10:29 AM  

Anonymous Anonymous said:

"Anonymous said...
Red Spot, have you ever met Crazy Susan from Cypress Park?

You'd make such a lovely couple. She hates Reyes even more than you hate Huizar. Between you two, you could corner the market on council-bashing in Northeast L.A."

What makes you think that Red Spot and Susan are the only people in CD14 and CD1 who hate both Huizar and Reyes and the rest of the Mexican Mafia. Most state administration from the NC's, through the City, the County to the Assembly and State Senate are bad.

Many of us dislike all of them. They all need to be flushed out...

July 11, 2009 9:06 PM  

Anonymous SUSAN ROCHA said:

And, who is crazy now? Look at today's, July 15 Los Angeles Times on page A10. A judge agreed with me.

July 15, 2009 1:47 PM  

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