- Days left
A situation in Lavonia, Georgia raises an interesting question about how far government entities should go in regulating businesses. The town recently spent more than $1 million to buy Café Risque, a strip club along an interstate. Its goal? To shut it down. And it did exactly that.

The strip club was operating since 2001, and the town had tried several times to close the business without success. The town enacted a ban on "adult-oriented" businesses, but the club was grandfathered because it existed prior to the ban. A change in ownership, however, would do away with the grandfather clause, so that's why the town bought it.

Supporters of this move by the town say that closing the strip club and removing its billboards will help the community. Yet the business was apparently operating legally, and so the move raises the question about how much the government should interfere in our lives.

On the one hand, the government should look out for the best interests of people, which include quality of life issues. Economic development is important, and a business that appears to be hurting the local economy should be studied closely. On the other hand, so long as a business is operating within the law, how far should the government really go in trying to shut it down?

I wouldn't want my tax dollars spent to buy a business in order to shut it down. Although in this case, hopefully some of that money can be recovered by selling the real estate to a developer who will bring in a business more suitable to the town.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

Understand and Avoid Health Care Reform Tax Penalties

The Affordable Care Act has brought new options for health care coverage to millions of previously uninsured Americans. While you can still choose not to purchase health insurance, that decision may come at a cost, beginning with the 2014 tax year. Eligible taxpayers who remain without insurance may be required to pay penalties, though there are exemptions for which you may qualify.

What Extra Tax Deductions Should I Make Sure To Take?

The federal government offers tax deductions and credits to reduce taxable income under certain circumstances. There are several that are often overlooked, including deductions for job hunting, caregiver expenses for dependents and children while you work, a credit to reduce taxes for moderate- to low-income earners and the premium tax credit associated with the Affordable Care Act. TurboTax can help determine if you qualify for these credits and deductions.

Add a Comment

*0 / 3000 Character Maximum