Letter to the Editor: "We should welcome all businesses which share our common values and support the economic wellbeing of our community."

(The following Letter to the Editor has been submitted by Bill McBay of Decorah):

""While it is lamentable that Menards has chosen to pursue other business opportunities, there is now another attractive business interested in establishing a presence in our community.  We should welcome all businesses which share our common values and support the economic well-being of our community. There really is no place to question how this or that particular economic entity will blend into this business community.  The important  thing is that a vibrant mix of businesses continues to serve the interests of our neighbors and friends.

When Walmart opened its original store, there was a similar discussion and great trepidation about the future of "downtown."  To be accurate, there have been significant changes caused by the establishment here of the world's largest retailer; some of the changes were beneficial and some were not.

There is a misunderstanding about the effects of tax abatements on future fictitious taxes where  "fictitious" means that the taxes have not yet been assessed.  When a business makes an investment and is then taxed, there is an incentive for the business to limit the investment in order to reduce taxes.

The opposite is true when a temporary tax reduction is granted in exchange for an investment. The investment can then be made larger without the immediate effect of increased taxes; but when the reduction ends the tax will be even larger due to the increased investment. Without the investment there would be no new taxes and the community will still bear the whole tax burden.

I, for one,  would encourage all serious investors to establish their businesses here in Decorah and thus ensure the continued prosperity of our wonderful town."