PatriotsReign

And you can't blame them either.

Editorial: Even profitable firms fleeing California | california, businesses, business - Opinion - The Orange County Register

"Democratic reaction to the news that Waste Connections, a $3.6-billion company and major Sacramento-area employer, is headed to Houston to seek a friendlier business climate tells other businesses all they need to know about the attitudes of those who run California's government."

Illinois companies eyeing an exit - chicagotribune.com

"Chicago's huge futures exchange owner CME Group has joined a growing list of companies threatening to leave Illinois as a result of the state's corporate tax increase earlier this year. Illinois pushed through the 45 percent corporate tax increase in January, trying to address one of the biggest budget shortfalls of any state in the U.S. But the move proved to be a risky step -- since then, both small and large companies have complained about the increase, and some have received incentives to stay put."

States may not like this, but they gonna have to get used to it. You want to raise corp taxes, then you better be prepared for increased unemployment.

California's unemployment rate is 11.3% and 10% in Illinois.

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"No one walking this earth knows what is truly righteous"

PatsFanInVa

Let's try a thought experiment, PR.

Let's say Texas creates a negative Corporate tax rate. You get 1% from the "Texas Permanent Fund" if you are a Corporation that has 100 or more jobs in Texas.

Let's say Texas creates a law where you can get a Corporate license plate if you are in the upper management or executive service of such a corporation, and converts HOV lanes in every urban area into Corporate lanes -- regardless of the number of commuters, only corporate executives can get anywhere on time.

Let's say Texas declares all EPA regulation to be null and void within the state, and the Supreme Court says "Okay, why not, you can do that."

Let's say Texas does likewise with OSHA regulations.

Finally, let's say Texas does away with minimum wage laws (sort of like they did, de facto, by winking and nodding at the practice of Corporate criminals hiring undocumented aliens to facilitate violation of all said laws and regs.)

While we're at it, since we've identified all the big corporate players for their license plates anyway, let's say that if you are such a player in Texas, you have the right formerly accorded the English king, to spend a night with any woman prior to her wedding day, whether she knows the exec or not.

Now then: do you think this would be a more attractive climate for employers than that in California and Illinois? I do.

Would Corporations not move to Texas under these circumstances?

Of course they would.

The question is not whether states can race with one another to the bottom. Of course they can.

The question is whether we have a common national interest in fair treatment of citizens, not to mention employees. It's manifestly clear to me that we do.

PFnV

scout

Illinois was nervous about losing Sears to Wisconsin who were offering a more favorable tax situation. How about every state mandating a bottom line on taxing corporations. Then, congress passes legislation levying a yearly tax on corporations which go overseas. This would be simmiliar to a tarriff. The record profits of corporations and the escalating earnings of CEO's and corporate officers dictate these laws. It is not the local mom and pop operation which moves to other states or overseas.

PatriotsReign

It would be nice if our federal, state & local gov'ts got a handle on spending before they worry about revenues. Most of our problems are not due to lack of revenue but too much spending.

If you had a pile of debt, would you look for ways to make more money so you could continue spending more than you make or would you cut back on your spending to live within your means?

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"No one walking this earth knows what is truly righteous"

Real World

Right, because all that is happening. Why not try a different experiment. One called reality. One where governments spend so much, and create such an undesirable environment for either it's people, or businesses, that they leave and look elsewhere.

If your landlord raises your rent to a point that seems unacceptable, don't you look for a new apartment somewhere else? That's what most people do, and that's exactly what these businesses are doing here.



Think about what you just typed. Would businesses competing for customers agree to mandate a "bottom line" on pricing? Of course not. Not only wouldn't they, but doing so is illegal. It's called collusion. I know, states rights, just like individual rights, are a damned thing.

We don't have a revenue problem. We have a spending problem.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Patters

First, I think we should consider that natural affinity that a waste company would have for state like Texas.

Second, the reality is that more people want to live in a state like California than Texas for a variety of reasons, including weather, location, hospitals, colleges, culture, and effective public services. You pay for the amenities of a liberal state, but you actually get a lot of good stuff. That's why California has one of the highest wealths per capita in the nation (as do many of the liberal states).

The Secret List of the 10 Wealthiest States in America

What’s really interesting is the average wealth per capita at the state level. The states with the highest wealth per capita will have the biggest cushion against financial shocks. In times of high unemployment or financial distress, wealthier people can liquidate some of their assets to ride out the tough times.

Real World

So you like the 1% when it suits you.

Sure, those states are the wealtheist per capita. They also tend to be the most expensive to live in. Furthermore, their benefits are in large part geographical. Coastal states with highly dense, urban population centers, have a much more dynamic, and stable economic environment, than do land locked states without a difference making resource to speak of. We've long said in this very forum, as have you, that $250k in NY, is a lot different than $250k in say Kentucky.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

DarrylS

A big issue here is, State A has to raise taxes for any number of reasons.

Company 1 says they want to move from state A to another state to avoid these taxes.

Company 1 moves to state B, as state B made a whole bunch of tax deals.

Fast forward to 5 years from now, State B is whining and bytching about how bad of a deal it was as they are not collecting taxes from this company.

Company 1 then outsources all of its jobs overseas, and gets tax credits for doing so..

It is all so f..ed up...

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"Being the best doesn't mean you always win. It just means you win more than anyone else".. tweet from Kurt Warner to Tom Brady.

sdaniels7114

45% in one year is a bit much.

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Give a man a gun and he can rob a bank, give a man a bank and he can rob everyone.

scout

The government/president can do almost anything they would like when it comes to business. History has proven that. Railroad, coal, air traffic controllers, whatever the situation, the President has stepped in and ordered industry to comply. In regards to economics, the problem will not be solved by cutting programs exclusively. I am in favor of a balanced budget, but know that is not going to happen (ever) with just cutting programs.