Atlanta can’t keep tech startups

[darkone]

A significant problem for Atlanta is that there already exist well-established centers in the U.S. with concentrations of advanced technology - for example advanced computing, biotechnology, pharmaceuticals, nanotechnology, microelectronics/semiconductors, energy, space systems, etc. etc.

New companies in these sectors are going to locate where there are investors as well as a large pool of available talent -- (this does not only include recent college graduates from the local tech univ., but also experienced professionals that can be snatched away from other companies in the area.) The latter is what the Atlanta area lacks in comparison to places such the Bay Area, DC, Boston, Dallas, LA, San Diego, Raleigh/Durham, etc.

I'm not sure how this will change, but the majority of GT grads (domestic and foreign) are largely heading to companies and research labs directly related to their academic and/or research background. And these are overwhelmingly outside of GA.

[AcidSnake]

Originally Posted by straightfromatown

Alabama is not a good example, they have fairly high taxes as well. Take a look at the lists of business friendly states, states where entrepreneurs often start new companies, you will find that most of them have low taxes.

I think that maybe you should retract that statement. I read the source you gave me and according to the Small Business Survival Index 2008 State Rankings List that was embedded within the article, Alabama is Eighth on the list in terms of most friendliest state in the nation for small businesses, and I have to assume that taxes are a big part of that.

Originally Posted by straightfromatown

The 7 Best States to Start a Business - US News and World Report

Consider if you were starting a new business in the current economy. You can go to pretty much any state and find employees with ease. Graduating college students are looking for work anywhere, and will move to you if it means they will get a job. Given those circumstances, would it be wise to set-up in a state with low taxes, where you keep more of your profits, or a state with higher taxes, where the government will take more and use it for who knows what? I feel I make the best decisions with my money and I'd like to keep it. If your business has restrictions that require that it be in a certain state then that is understandable. But many tech start-ups can be run anywhere- even outside the US. For many owners of these types of companies moving to a low tax state can mean a 5-10% increase in their bottom line. I think that if Georgia were to lower or remove its personal income tax we would see more of these businesses in Georgia, which would be a great thing for all of us who live here.

Dude, are you even reading your own source? Georgia's rating on the index is twelfth, much better than Utah at 15th, one of the states that the article had lauded for its business friendliness. You haven't convinced me of anything about your opinion.

In fact this source that you provided only seems to re-confirm for me that it takes more than lower taxes to encourage vibrant young start-ups to set up shop in a state. Nice try, though.

[straightfromatown]

Originally Posted by AcidSnake

In fact this source that you provided only seems to re-confirm for me that it takes more than lower taxes to encourage vibrant young start-ups to set up shop in a state. Nice try, though.

I agree, but Georgia clearly doesn't have those other things that make it attractive for these types of businesses. Instead of just hoping that things will eventually change, I'm proposing that we offer an immediate incentive for new businesses. Lower taxes could be put in place next year and could start drawing new businesses to the state. I have started two small businesses (not true tech businesses, but related) during my lifetime and have them set-up in states with lower tax rates and easier registration requirements, if Georgia offered the same benefits that I get elsewhere I would definitely move them here. It would be easier for me since I live here anyway, but currently it would mean throwing away tens of thousands a year to GA taxes. I'd love to be able to relocate them here and hire people in Georgia, but our high taxes are preventing that.

[AcidSnake]

I think that you're riding a one-trick pony with this "lower taxes" thing. To me it's the culture that prevents Georgia from being greater than what it is. Same can be applied to Alabama, and throw in Mississippi for good measure.

Lower all the taxes that you want but it's the "bubba" mindset that sets some of the southern states back in my humble opinion.

Originally Posted by straightfromatown

I agree, but Georgia clearly doesn't have those other things that make it attractive for these types of businesses. Instead of just hoping that things will eventually change, I'm proposing that we offer an immediate incentive for new businesses. Lower taxes could be put in place next year and could start drawing new businesses to the state. I have started two small businesses (not true tech businesses, but related) during my lifetime and have them set-up in states with lower tax rates and easier registration requirements, if Georgia offered the same benefits that I get elsewhere I would definitely move them here. It would be easier for me since I live here anyway, but currently it would mean throwing away tens of thousands a year to GA taxes. I'd love to be able to relocate them here and hire people in Georgia, but our high taxes are preventing that.

[bizchick86]

Originally Posted by AcidSnake

Lower all the taxes that you want but it's the "bubba" mindset that sets some of the southern states back in my humble opinion.

Honestly, I think this is the core of the transit and sprawl issues in the city.