Regulations are killing my business

These small businesses are being squeezed by local regulations requiring specific licenses. All are fighting back with the help of the Institute for Justice, a civil liberties law firm.

Taxi driver

small business regulation gallery
  • Business: Taxi driver
  • The rule: Total taxi licenses capped at 321
  • Rule maker: City of Milwaukee
  • Cost of license: Up to $150,000

After 26 years on the job, it's become too expensive for Ghaleb Ibrahim to drive a taxi in Milwaukee, Wis.

A 1992 law capped the number of taxi permits at 321, which has remained unchanged, causing the cost of a license to skyrocket to $150,000. That has turned license owners into taxi barons, as drivers are forced to compete with each other to rent cars on a weekly basis.

Making matters worse, passenger demand has fallen over the last few years.

The breaking point for Ibrahim came just before Christmas, when a three-hour wait outside the Potawatomi casino yielded a single ride -- for a measly five bucks. Compare that to the $650 it costs for Ibrahim to rent and operate a taxi every week. Lately, he rarely breaks even.

A college dropout from Jordan, Ibrahim said taxi driving is the best work he can find. And it would make economic sense if he could own his own licensed cab and avoid paying exorbitant fees.

"The city has the obligation to leave the door open for those who want to try the business," he said.

  @Jose_Pagliery - Last updated January 30 2013 11:43 AM ET

Partner Offers

Most Popular