Start-up in ‘sharing economy’ says it helps boost local tax revenue
We’re all about the sharing economy, though it’s not really sharing. It’s about providing a service that’s convenient and affordable. I’ll share my car with you, if you’ll share some of your money with me.
Popular car-sharing services like Uber and Lyft are hits with consumers. There is a downside, however: Critics say the new services cut tax revenue by taking business away from cabbies who pay licensing fees and potentially higher taxes.
All of which raises a question: Can the sharing economy also share the wealth?
A delivery start-up called Favor thinks so. The company will deliver just about anything, anywhere, anytime in designated neighborhoods of Austin, Texas, via its app. Favor has presumably not taken away anyone’s job. In fact, jobs are being added, and so are local sales taxes.
Read full article here