Monday, December 20, 2010

Local Economics and the Tax Base

Mayor Dean (no relation, by the way) has been saying for some time now that the city needs to expand its tax base, that major economic activity is leaving the city and making it more difficult for the local government to operate efficiently. Yesterday, in the Nashville City Paper, he reiterated the theme. It's a difficult proposition however; the difficulty of getting approvals for construction and zoning impacts many small and medium sized organizations, usually the strength of any local economy. As a result, companies considering Nashville may choose to locate elsewhere because of the less complicated regulatory environment. Without continuing support for those kinds of businesses, it is just easier to move elsewhere. Balancing the needs of local business juxtaposed with the concerns of neighborhoods makes keeping the tax base vital a challenge. But surely, there is enough room in the county for all.

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