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#1
Old 07-09-2010, 07:47 PM
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Immigrants living Tax Free

I don't know if this is a regional stereotype, springing forth from some backwoods community... But I hear it a lot.

"Those A-Rabs get to have their liquor store, seven years tax-free. As soon as their seven years are up, they sell it to a cousin so that he can get another seven tax-free years!"

I live in Michigan, and there are a lot of Arabs. A town near me, Dearborn, is 30% Arabic. The further away from Dearborn you get, there are fewer Arabs and many more Mexicans.

Arabs own a lot of party stores (or liquor stores as I hear the Real World calls them). A lot of them that I've talked to are actually Chaldean. That's besides the point.

Why do MOST white people I meet (here, not online in this vast world of superior intellect) seem to fullheartedly believe that Arabs dont pay taxes.

What gives?
#2
Old 07-09-2010, 08:20 PM
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Are you asking if the rumor is true, or why some people spread the rumor?
#3
Old 07-09-2010, 08:22 PM
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they may be talking about tax abatements/breaks that are given to new businesses in order to encourage economic growth. that probably registers in their minds ad "no taxes!" and thus the meme starts.
#4
Old 07-09-2010, 08:31 PM
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Usually, though, a small business doesn't qualify unless they add a certain number of jobs.

In any case, they would have to pay taxes like anyone else.

If this comes up, ask the person making the assertion whether the store charges sales tax. If they do, where is it going?
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#5
Old 07-09-2010, 08:40 PM
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Quote:
Originally Posted by RealityChuck View Post
Usually, though, a small business doesn't qualify unless they add a certain number of jobs.

In any case, they would have to pay taxes like anyone else.

If this comes up, ask the person making the assertion whether the store charges sales tax. If they do, where is it going?

This is Michigan we're talking about - they're quite generous with tax benefits in the crapola areas of the state, so in fact they may not have to pay taxes like everyone else.

Quote:
Renaissance zones are virtually free of all state and local taxes for businesses located within their boundaries. There are over 150 geographic areas in Michigan that are designated as renaissance zones.

Most state and local taxes are abated in the Renaissance Zones. The tax benefits are phased out at 25% increments during the Zone's final three years of existence.
http://ref.michigan.org/medc/service...e_Feat_Links_4

http://waynecounty.com/business_incentives.htm
#6
Old 07-09-2010, 08:42 PM
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Quote:
Originally Posted by RealityChuck View Post

If this comes up, ask the person making the assertion whether the store charges sales tax. If they do, where is it going?
I have asked this, actually... the most common response is, "They get to keep it. That's why they advertize 'state liquor minimum'".

.....?? Whhaaa...?

And I do not belive that it is true that immigrants pay no taxes for 7 years, I assume this rumor is somehow construed from SOME law...?
#7
Old 07-09-2010, 08:43 PM
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Rumor, I'm not specifically referring to any specific "zones" such as you've mentioned. I'm talking about the corner liquor stores.

Last edited by nuggz; 07-09-2010 at 08:44 PM.
#8
Old 07-09-2010, 08:48 PM
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Quote:
Originally Posted by nuggz View Post
Rumor, I'm not specifically referring to any specific "zones" such as you've mentioned. I'm talking about the corner liquor stores.

the zones aren't necessarily all large brownfield developments - the first one i saw in detroit said something along the lines of it being a zone with commercial businesses and residences.

also, the zones are just one part of it. there are probably many business incentives for investors with money. and probably the only ones willing to invest in these areas are the immigrants that make up large minority chunks of the population.

Last edited by Rumor_Watkins; 07-09-2010 at 08:49 PM.
#9
Old 07-10-2010, 01:48 AM
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It's not a Michigan thing. I've been hearing that all my life and have never been to Michigan.

http://snopes.com/business/taxes/immigrants.asp
#10
Old 07-10-2010, 02:03 AM
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Most immigrant "tax free this and that" urban legend stuff is nonsense, but the extent the rumor exists it may come from the reality that many immigrant convenience store owners (at least in MD) are incredibly dilatory and evasive in paying the state sales tax they owe. It's not uncommon for the sales tax arrears to get to hundreds of thousands of dollars for individual stores.
#11
Old 07-10-2010, 02:12 AM
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The whole idea behind tax relief programs are that they are for people willing to open up businesses in underserved or "undesireable" areas.

We have a similar complaint in Chicago that those "A-rabs" open up stores in black neighborhoods and overcharge everyone. Now I don't know if they get tax breaks, but there certainly is a lot of grant money for people willing to open businesses in poor Chicago neighborhoods.

There's also a huge amount of risk to it. From robberies to protection money to gangs and all sorts of things. This is WHY there are few businesses in those areas.

What happens is people take the money open stores and as they become sucessful sell out and move to a better neighborhood. This is nothing knew, especially among immigrants. In Chicago, Milwaukee Avenue (Chicago's great 2nd shopping street), since the time the street was named, immigrants have been founding businesses on it. As the business got better they closed up and moved further northwest up Milwaukee Avenue. (Milwaukee is a diagonal street that runs NW).

The closed up shop is then released to another set of incoming immigrants and the cycle started over.
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