Heisenberg wrote:California is practically run by and for Google, Facebook, and Apple. It's a state where Elon Musk lives 10 minutes away from actual shanty towns. If that is "socialism", then the term literally has no meaning.
WHY $15B CORP FLEES CALIFORNIA …
For Tax Purposes. What Else?A study conducted by Joseph Vranich, president of Spectrum Locations Solutions, a consultant firm in Irvine, Calif., quantified the trend of companies fleeing California and determined how, and to what extent, it is caused by California’s “hostile” business environment.
Using publicly available records, mostly media and government reports, Vranich searched for what he calls “California divestment events” — business decisions to shun the state.
These come in three types: companies that left the state entirely; companies that expanded in other states rather than in California; and a few companies that had planned to grow in the Golden State but changed their minds.Vranich found records of 1,510 divestment events occurring in California between 2008 and 2014.
Yet, according to a report in the National Review, that number is an incomplete accounting of the situation.
As Carly Fiorina ably pointed out during the GOP debates, big government tends to benefit big business.
To no one’s surprise, Texas was the main beneficiary of California divestment events during each year of the study.
Following Texas, the top destinations for “escaping” California businesses were Nevada, Arizona, Colorado, Washington, Oregon, North Carolina, Florida, Georgia, and Virginia.
California’s elected officials do not appear to care too much about businesses leaving the state. Yet the problem is real.
Add Jacobs Engineering Group Inc. to the list.
One of the world’s top engineering and architecture firm, Jacobs has approximately $15 billion in revenues.
Yet despite all the evidence, Governor Jerry Brown has made several public statements denying a “mass exodus” of California businesses.
Brown reportedly has a long history of making excuses when businesses reject his state.
When Toyota announced it was uprooting three California plants and consolidating its headquarters in Plano, Texas, the Wall Street Journal quoted Brown as saying, “We’ve got a few problems. We have lots of little burdens and regulations and taxes. But smart people figure out how to make it.”
The Journal’s reply: “California’s problem is that smart people have figured out they can make it better elsewhere.” OK, so Silicon Valley has enjoyed a boom in the last few years. However, as The Economist noted last year, “whereas venture-capitalists and coders may be rushing to California, others cannot wait to leave,” as the state still faces substantial problems of its own making.
http://www.calbizjournal.com/whybusines ... alifornia/Other companies that have left, or are pricing moving van rates, are Nestle (leaving Glendale to reboot its U.S. headquarters in Rosslyn, Va.), Nissan North America (left for Nashville a decade before Carl’s Jr. did), Jamba Juice (traded San Francisco for Frisco, Texas), Occidental Petroleum (prefers Houston over Westwood for its headquarters), Numira Biosciences (Irvine, no – Salt Lake City, yes) and Omnitracs, a software firm (goodbye San Diego, hello Dallas).
Carl’s Jr. didn’t move its corporate operations to Nashville because of California’s climbing minimum wage. But increasing employment costs were a factor in the decision to stop opening new restaurants in California and a reason why franchisees are opening “very few” here, outgoing company CEO Andy Puzder says.
So that means fewer job opportunities for entry-level workers, who, like companies, will also have to flee the state’s ugly business climate, joining the 250,000 workers at all levels who, according to federal data, left in 2013 and 2014 alone.
http://www.foxandhoundsdaily.com/2017/0 ... alifornia/It’s not all bad. The Spectrum report notes that California offers a variety of incentive programs to help businesses, many of which are administered through the Governor’s Office of Business and Economic Development. Those include tax incentives for aerospace companies, California Film Commission incentives, employment training panel incentives and California Energy Commission incentives.
Some of those incentives are hefty.Tesla, a Palo Alto-based makers of electric cars, received $15 million in tax credits last year. And Environmental Systems Research Institute Inc., a Redlands-based international supplier of geographic information system software, received $2 million in tax credits.
But those incentives are still somewhat overshadowed by the businesses that have left California. The report shows that manufacturing firms accounted for the largest swath of businesses (562) that went looking for greener pastures, followed by pharmaceutical companies, makers of medical devices, biotech firms, health and dental businesses and veterinary businesses.
Other sectors that ranked high on the list included online retailers, e-commerce businesses, makers of communications equipment, and distribution, warehousing and logistics firms.
H.J. Heinz Co. shuttered its Chatsworth condiment plant last year and moved those operations to Mason, Ohio, a move that resulted in the layoff of 145 workers.
RifleGear, a Fountain Valley company that sells a variety of firearms, moved its corporate headquarters to Plano, Texas, this year and Walt Disney Parks and Resorts plans to transfer manufacturing of costumes for the company’s theme park workers from Fullerton to Orlando, furloughing 85 employees in the process.
https://www.pasadenastarnews.com/2016/0 ... an-answer/