The answer isn't simply out-of-sight tax rates. No, more important is its business climate.
Consider the case of Bill Smyth, owner of Westover Winery. Smyth's winery is a "labor of love," a small business that's open for 10 hours/week, sells about $200k in wine, and makes $11k/year in profits. Smyth has no employees but utilizes volunteers who work like interns at Westover, learning first hand under Smyth’s tutelage hand about enology. It’s a “win-win” for Smyth and his volunteers, according to Wine Searcher. One volunteer liked Smyth and Westover so much she eventually became his wife.
Well, Smyth fell afoul of this law and, without warning, was fined $115k. Doing the math, it would take Smyth 10 years of profits to pay the fine.
So, it’s auf Wiedersehen, Westover, which will be history at the strike of midnight on December 31 when the New Year 2015 is rung in. Other small wineries have taken note and have sent their volunteers packing.
This is what business sense means in the “Golden State.” Little wonder it ranks 50th as the most business “unfriendly” state in the Union, according to the Small Business and Entrepreneurship Council’s 2014 Small Business Policy Index.
Let the discussion begin…
To read the 2014 Small Business Policy Index, click on the following link:
To read the Wine Searcher article, click on the following link: