YOU CAN’T KEEP SPENDING, TAXING,
REGULATING MORE, WITHOUT PEOPLE LEAVING
By Marty Carlson
California media outlets across the state have reported at least two dozen California companies have said they are leaving the state due to the ongoing onslaught of taxes fees assessments etc. in this state.
The day after the passage of proposition 30 last November the state of Arizona began in onslaught of recruitment for businesses to leave California.
Apparently, many are interested due to the commerce and laws, and issues involved in doing business in California.
Barry Broome, Pres. of the greater Phoenix Economic Council launched a campaign to recruit California CEOs one day after the voters in California improve prop 30 last November, and it appears the campaign is working.
Broome was quoted as saying” you start sending the wrong message to the folks and they start voting with their feet.”
One of the people that recently moved to Arizona was a marketing and technology company, the move from California to Arizona and does business in a Scottsdale office Park.
He was quoted as saying “certainly when we were weighing the pros and cons the operating cost and certainly some of the benefits of Arizona, it certainly looks favorable.”
And apparently, the greater Phoenix region grew by 50,000 jobs last year. While the meantime California companies are thinning their ranks.
Chevron moved 800 jobs from the Bay Area to Texas, and waste connections shifted more than 100 jobs to Texas from the Folsom area.
One business relocation expert stated that he has tracked 254 companies of all sizes and shapes and kinds that have left the state since 2011. He also stated that companies leave California for three primary reasons: “I taxes, excessive regulations and the threat of really ridiculous lawsuits.” And they are leaving for places such as Arizona estate Thursday for businesses.
Arizona is big on streamlining business regulations and cutting through red tape. In Phoenix, the emphasis is on granting business permits very quickly. Many permits in Phoenix are done in a single day.
By contrast California’s process is painfully slow, if it happens at all. Waste management had tried getting permit for recycling facility in Los Angeles at an old landfill site, and several years later that is still not permitted to this day.
Spend 10 years attempting to get the permit in California, and it took two years to build the facility in Arizona.
CEOs are saying it is not an employer friendly state it is difficult to deal with, and definitely more costly to operate in.
In addition, all the states, California ranks dead last for policy friendliness, with key negatives for high taxes, high Worker’s Compensation’s costs, and high electricity costs.
Gov. Jerry Brown of California denies that they are losing jobs of the state despite the 254 companies that have been accounted for as relocating.
The former executive of waste management believes that the state is doing too little and much too late to help businesses, “stating denial is not a strategy.”
The California legislator is now considering even more bills to add more burden to businesses in the state, and in the meantime Arizona has placed a moratorium on future regulations for businesses. This exemplifies how Arizona and California have radically different values when it comes to business and labor.
Census data in recent years shows that California used to be a magnet for people from other states, but now population patterns have started to reverse. Nearly 100,000 more people moved out of California that moved in with a prime destination to be in Texas and Arizona.
There are many reasons for people to leave a state but the trends continue to show California as a net exporter of people to other states.
In my opinion California is quickly becoming nothing more than a welfare state and without a tax base to pay for it I don’t know how they plan to do that.