How does it discourage business?
When you hear complaints about companies setting up a PO Box on some Carribeian island, remember they did so to avoid some of the onerous income taxes put on them. Such as paying income tax on foreign revenue. Offshore headquarters at a PO Box will no longer have a tax benefit and will no longer happen.
Also, currently there is better than $10 TRILLION of American wealth in offshore financial institutions, primarily because of the tax system and level of taxes. With the removal of the income tax and other federal taxes, a very large portion of that $10 TRILLION will return to America and move through our economy.
The reason that Mobile is having a problem retaining businesses is because of our sales tax. The city levels 4 percent, which, when you get down to it, is what you need to run the city operations. The problem is, Mobile County tacks on an extra percent, and then the State of Alabama comes and hauls off it's 4 percent.
It is thereby much easier for businesses to locate in unincorporated areas in this state, and as such, this makes life in municipalities, be it business recruitment or annexation, that much more difficult.