Toyota moving to Texas

NEW -> Contingent Buyer Assistance Program
I can tell you from personal experience of and actual friend of mine.  Built a thriving 200 plus business in SM.  Raging Democrat who moved his entire company to Austin 2 years ago.  Took over 120 six figure plus salaries with him.  Reason...lower taxes, lower regulation. lower cost of living and I can tell you that after 2 years he has massive retention. He was not poached...the numbers penciled out too well.  Swears not only would he NEVER start a biz in Cali again, but he is never coming back.  This was a NATIVE, organic entrepreneur.  We cannot lose guys like that.  They create jobs, families, tax payers and consumers.  The multiplier effect of just that one very successful biz is astonishing.
 
I think we should start taxing all corporations outside of CA that do business in CA at least 1-5% of their CA sales regardless of profit. Those that are headquartered here wouldn't be affected by this tax. Probably could result in a tax cut to all businesses and individuals in CA.
 
Park said:
I think we should start taxing all corporations outside of CA that do business in CA at least 1-5% of their CA sales regardless of profit. Those that are headquartered here wouldn't be affected by this tax. Probably could result in a tax cut to all businesses and individuals in CA.
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Anyone? anyone...know what a disaster the "Smoot-Hawley Act"  was?...Anyone?  Anyone?

http://youtu.be/uhiCFdWeQfA
 
But my proposal will still work.
NBA players and all other professional athletes that are out of state pay Ca income tax when they play at the staples center. Why shouldn't companies pay to play in CA.
 
Even the bureaucrats blame the bureaucracy.

http://www.cnbc.com/id/101625195


Torrance Mayor Frank Scotto blames the state of California for Toyota Motor's decision to relocate its North American headquarters from the city to Plano, Texas.

"The state of California lost Toyota," Scotto said on "Power Lunch" Tuesday.

He pointed to a number of issues in the Golden State that negatively affect companies' bottom line: tax structure, workers' compensation and liability insurance.

"There are so many other levels of problems that we face in California that make it very difficult for any business to be in the state of California," he added.
 
@morekaos:

For every one of your friends who leaves Cali, I still think there are two or more who start up in Cali.

All these people have to be coming from somewhere... in Irvine alone, the population has increased almost 100k since 2000.

With so many people here in the suburbs, there is a lot of support for smaller retailers/restaurants/service companies. There is something to be said about the population concentration in Cali cities versus the spread out in TX.

Whenever a window closes, a door opens. :)
 
irvinehomeowner said:
@morekaos:

For every one of your friends who leaves Cali, I still think there are two or more who start up in Cali.

All these people have to be coming from somewhere... in Irvine alone, the population has increased almost 100k since 2000.

With so many people here in the suburbs, there is a lot of support for smaller retailers/restaurants/service companies. There is something to be said about the population concentration in Cali cities versus the spread out in TX.

Whenever a window closes, a door opens. :)
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While I agree with this comment.. why not try to be more competitive at the same time?  Sounds like our "leaders" are asleep at the wheel instead of growing the sunshine state. 
 
Park said:
I think we should start taxing all corporations outside of CA that do business in CA at least 1-5% of their CA sales regardless of profit. Those that are headquartered here wouldn't be affected by this tax. Probably could result in a tax cut to all businesses and individuals in CA.
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Most states charge taxes on profit, few charge taxes as a percentage of sales. Companies not headquartered in california already pay california income taxes if they have operations here in california. A company, regardless if where it's headquartered pays income taxes in the states where they have nexus based on apportionment factors. Essentially they pay taxes just like the nba players that live in Miami but played a game at staples.
 
irvinehomeowner said:
@morekaos:

For every one of your friends who leaves Cali, I still think there are two or more who start up in Cali.

All these people have to be coming from somewhere... in Irvine alone, the population has increased almost 100k since 2000.

With so many people here in the suburbs, there is a lot of support for smaller retailers/restaurants/service companies. There is something to be said about the population concentration in Cali cities versus the spread out in TX.

Whenever a window closes, a door opens. :)
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That is a valid point but what are you replacing these business with?  What you lose is a vibrant, successful, mature and growing, tax paying base and you get my Tita Chit opening a gold coin store on the corner.  For every high profile exit please show me what established business have recently announced with fanfare that they are moving to our sunny shores?  If you use the Hyundai ex  than you have to go with the poached tax incentive reasoning.  Over the last 10 years the vibrant companies that started here, mature then head for the exits.  Apple, Tesla, United Healthcare and Oxy to name but a few.  Legacy Elec, EDM Labs and MVM Tech in the OC.  This is a real problem for us.
 
morekaos said:
That is a valid point but what are you replacing these business with?  What you lose is a vibrant, successful, mature and growing, tax paying base and you get my Tita Chit opening a gold coin store on the corner.  For every high profile exit please show me what established business have recently announced with fanfare that they are moving to our sunny shores?  If you use the Hyundai ex  than you have to go with the poached tax incentive reasoning.  Over the last 10 years the vibrant companies that started here, mature then head for the exits.  Apple, Tesla, United Healthcare and Oxy to name but a few.  Legacy Elec, EDM Labs and MVM Tech in the OC.  This is a real problem for us.
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Amazon tech staff grows in O.C.http://www.ocregister.com/lansner/amazon-446599-a2z-strong.html

Google & Microsoft also have offices here in Irvine.

I wouldn't call those Tita Chit gold & pawn.
 
All three of those companies are expanding their footprint EVERYWHERE.  Relatively speaking their additions here are modest compared to what they are doing in other states.  A California presence is necessary for now for ANY international business.  I am talking about an announcement like Microsoft moving its main operations here from Redmond...show me one of those.
 
morekaos said:
All three of those companies are expanding their footprint EVERYWHERE.  Relatively speaking their additions here are modest compared to what they are doing in other states.  A California presence is necessary for now for ANY international business.  I am talking about an announcement like Microsoft moving its main operations here from Redmond...show me one of those.
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California still have the most number of Fortune 500 companies (54).  New York has 52 and Texas has 52 but a large chunk of those are related to energy/oil/mining.

 
Irvinecommuter said:
morekaos said:
All three of those companies are expanding their footprint EVERYWHERE.  Relatively speaking their additions here are modest compared to what they are doing in other states.  A California presence is necessary for now for ANY international business.  I am talking about an announcement like Microsoft moving its main operations here from Redmond...show me one of those.
Click to expand...

California still have the most number of Fortune 500 companies (54).  New York has 52 and Texas has 52 but a large chunk of those are related to energy/oil/mining.
Click to expand...

That was 57 in January before Charles Schwab, Chevron and Campbells Soup announced they were leaving.  That number will continue to shrink. Again, show me a Fortune 500 Company in the last 5 years who has announced they are coming.
 
morekaos said:
Irvinecommuter said:
morekaos said:
All three of those companies are expanding their footprint EVERYWHERE.  Relatively speaking their additions here are modest compared to what they are doing in other states.  A California presence is necessary for now for ANY international business.  I am talking about an announcement like Microsoft moving its main operations here from Redmond...show me one of those.
Click to expand...

California still have the most number of Fortune 500 companies (54).  New York has 52 and Texas has 52 but a large chunk of those are related to energy/oil/mining.
Click to expand...

That was 57 in January before Charles Schwab, Chevron and Campbells Soup announced they were leaving.  That number will continue to shrink. Again, show me a Fortune 500 Company in the last 5 years who has announced they are coming.
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Campbell's HQ has always been in New Jersey.  They closed a plant in California because of lagging sales.

Chevron moved some jobs from San Ramon to Texas but are still based in San Ramon.  It make sense for Chevron to be in Texas because the number of energy/oil companies in Texas and its proximity to the Gulf of Mexico. 

Charles Schwab is still based in SF.  They talked about adding a center in Denver but remains in SF.
http://www.bizjournals.com/sanfranc...adquarters-san-francisco-denver.html?page=all

Toyota moving to Texas makes a lot sense beyond the tax issues.  They have multiple plants in the area.

Everything you say about California can be said about the United States 10 years ago...companies are starting to move back to the US after 10-15 years overseas.
 
An American icon, the Campbell Soup Company, is closing its plant in Sacramento, leaving 700 people without jobs. The plant was built in 1947, and some of its workers have worked there for forty years or more.

Most of the items produced in Sacramento will be transferred to Campbell?s plants in Texas, North Carolina, and Ohio.

Comcast announced two days ago that it will close all three of its call centers in Northern California, including one in Sacramento. 1,000 Comcast employees, including 300 in Sacramento, will have to pull up stakes.

That?s 800 jobs out the door which gives Chevron a larger presence in Texas than it still has in California

Charles Schwab's plans to move about 1,000 jobs from San Francisco to Texas inflamed Texans who fear that more Californians will ruin the Lone Star State

These numbers are disastrous.
 
morekaos said:
An American icon, the Campbell Soup Company, is closing its plant in Sacramento, leaving 700 people without jobs. The plant was built in 1947, and some of its workers have worked there for forty years or more.

Most of the items produced in Sacramento will be transferred to Campbell?s plants in Texas, North Carolina, and Ohio.

Comcast announced two days ago that it will close all three of its call centers in Northern California, including one in Sacramento. 1,000 Comcast employees, including 300 in Sacramento, will have to pull up stakes.

That?s 800 jobs out the door which gives Chevron a larger presence in Texas than it still has in California

Charles Schwab's plans to move about 1,000 jobs from San Francisco to Texas inflamed Texans who fear that more Californians will ruin the Lone Star State

These numbers are disastrous.
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Wait...you need to figure out your narrative. 

Again...lower end jobs will flow out of a state like California because of higher living costs in California and lower wages elsewhere.  Of course Chevron has a bigger presence in Texas...they have a lot more plants/wells/refineries in Texas than in California.

The Campbell plant shutdown has to do with lagging sales.

Really, disastrous?  There are 17 million people employed in California.
 
Collectively these are good, stable, high paying jobs.  My Tita Chit can't pay her counter people comparable salary and benefits.  Not only that, these announcements are all happening in a very short period of time.  The ones we are discussing have happened in the last 4 months.  I understand the long term argument but this is an accelerating near term trend that has little to balance the losses.
 
Jobs are jobs.

Even if we have only 5 F500 companies in Cali, if they supply a large amount of jobs and salaries, that even outs.

Or what about more smaller companies with less employees? Instead of 1 company with 120 6-figure salaries, what's so bad about 2 companies with 60 6-figure salaries or 200 companies with 6 5-figure salaries?

I don't mind Tita Chit and her Gold store on the corner... small businesses are just as important to local economies as F500 companies.

Like I was telling qwerchete, no matter how many companies leave Cali, there will always be some companies starting up or moving to Cali. They may not be the same size and magnitude individually, but collectively, it's probably more coming in than going out (or else population would not be growing year over year).

There are 5m more people in Cali compared to 2000. There are 1m+ more jobs in Cali since 2010, so whatever happened from 2008-2010 has seemed to been reversed.
http://www.deptofnumbers.com/employment/california/

chart
 
It is the "quality" of those SP500 jobs that are hard to replace.  Additionally the reason Chevron has moved so many jobs out is this state refuses to allow them to do what they do.  Regulatory strangle will not let an oil company function and expand here.  Look at Waste management.  They tried for ten years to get approval for a recycling facility to be built here.  Futile and expensive.  They opened the very facility in Arizona and went from white board to operation in just 2 years.  Good long term facility and good jobs....gone
 
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