Three-year tax break suggested for business

New companies that open in Los Angeles would be granted three-year exemption from paying the city business tax under a proposal unveiled Tuesday. Daily News.

If approved by the City Council, the business-tax holiday will exempt new companies from having to pay the city's gross receipts tax for three years. Officials say any loss in revenue would be offset by new companies and their employees purchasing goods and sevices from existing firms, which, in turn, pay business taxes.

The Marshall School of Business at USC estimated the holiday could result in the creation of 55,000 new jobs.