Effects Of Walmart
The first accusation of Wal-Mart is the destruction of small towns’ tax base by pushing small retailers to close their doors and go out of business because it is nearly impossible to compete with the low prices established by the giant retailer. According to a study published in the New York Daily News, eighty-two local stores went out of business in the West Side of Chicago after the opening of a Wal-Mart in 2006. This number shows the big loss faced by the town since the closure of all these stores means immediately that the total amount of taxes received by the town will automatically drop off. For example, the existence of a Wal-Mart in any town is associated with the decrease of the food licenses fee usually paid by the closing businesses.
Moreover, towns prefer to have different taxable businesses instead of one big box retailer. Michael Robert, the Government Careers Expert, states in one of his online articles, “Cities that have only one major employer desperately seek more. Being a one-horse town also leaves the entire town susceptible to downturns in the major employer’s economic sector." In other words, the loss of local small businesses caused by Wal-Mart put the towns in a risked situation since the shutdown of Wal-Mart for any reason leaves them without tax resources.
Moreover, towns prefer to have different taxable businesses instead of one big box retailer. Michael Robert, the Government Careers Expert, states in one of his online articles, “Cities that have only one major employer desperately seek more. Being a one-horse town also leaves the entire town susceptible to downturns in the major employer’s economic sector." In other words, the loss of local small businesses caused by Wal-Mart put the towns in a risked situation since the shutdown of Wal-Mart for any reason leaves them without tax resources.