Toyota North America HQ Leaving CA (spend, crisis, how much, dollar)

[Lowexpectations]

Right to work states are picking up jobs than non right to work and states with no income tax are picking up more jobs than those with state income tax. While a lot of folks from Cali might feel Toyota moving is a big deal but it's something that could becoming a growing problem even more so if you stick your fingers in your ears a scream lalalalala

[jm1982]

Originally Posted by TVC15

And so does Texas. People at least know what you are talking about when you post.

So you can also thank Texas anytime.

Federal tax revenue by state - Wikipedia, the free encyclopedia

Looks like Texas actually pays more per person/capita too versus CA.

[oldtrader]

Don't understand this. Why would Tesla set up everything in CA ? They have a plant here and it makes sense for them to create a plant somewhere else to maximize incentives and also negotiate against dealer laws. Anyways, their HQ is here as well. Also, why doesn't Perry create industry and new jobs instead of "poaching" from another state.

Why are California companies moving to other states, and bailing out of California and taking their jobs with them.

Only four reasons:

1---California has the worst attitude towards businesses than any other states, and is considered the most business unfriendly state in the country. Example: The company wants to increase the size of their plant, or establish a new manufacturing operation. It takes at least 2 1/2 years to get required permits, for any type of business in California. In Texas and most other states, it takes from 1 to 6 weeks. This means, if they come up with an idea to open a new operation, they can have it up and running in a month or so, OR 2 1/2 years later in California.

2---Taxes. California taxes on businesses is way above some other states.

3---Cost of doing business. They can move from California to states like Texas, and reduce their cost of doing business by as much as 40%, and that 40% goes to the bottom line. It allows them to lower prices, or whatever it takes to increase business.

4---Cost of living. Their employees in Texas will be able to buy homes, and live better than they could in California. It helps them when trying to attract top talent.

[jm1982]

Very good points. Each of them are big issues, but I think #1 is especially important.

With things changing so fast these days you can't wait that long.

Even different cities within a state operate different too.

For example city of L.A lost out on a much of craft beer breweries because L.A made it so hard to open.
So the same thing seems to be happening on the state level.

I've heard the example of restaurants specifically Carls Jr..so it's likely the same for other types of businesses

This is a good example of the differences between the states
“It costs us $250,000 more to build one California restaurant than in Texas” said Puzder. “And once it is opened, we’re not allowed to run it.”
Puzder discussed the difficult California permitting requirement process, and “oppressive environmental requirements.” “It takes eight months to two years to get permits to build a restaurant in California,” said Puzder. “In Texas, it’s one and one-half months.”
- See more at: http://calwatchdog.com/2011/03/16/a-....0alGv8OB.dpuf

This probably explains why you often see a lot of vacant places for lease instead of having them filled ,generating money(tax money) and employing people!

[oldtrader]

This probably explains why you often see a lot of vacant places for lease instead of having them filled ,generating money(tax money) and employing people!

Let's us let news articles explain the problems for business in California and why they are bailing out of California, or opening their now operations in other states.

First Toyota news.

https://screen.yahoo.com/toyotas-pla...055500110.html

Toyota's Planned Departure Points To California's Reportedly Unfriendly Attitude Towards Businesses « CBS Los Angeles

California most business unfriendly state.

CEOs: California worst state for business - The Orange County Register

California is bad for business - Los Angeles Times

Steve Malanga: How California Drives Away Jobs and Business - WSJ.com

WORLD | Business-unfriendly | Angela Lu | Feb. 19, 2013

California unfriendly to business: Perception or reality? - San Diego Conservative | Examiner.com

Calif. business leakage is a bummer | CalWatchDog

California, NY income taxes drive business to Miami | Miami Today

California encourages business flight

2014 State Business Tax Climate Index | Tax Foundation

Jerry Brown and the California cheer leaders on this thread, should stop smoking the farm product California is famous for (hint grown in Emerald Triangle) for work for a new start for the state, one that will benefit the people living there.

[Ultrarunner]

When Toyota wanted to expand it's plant in Fremont California on the land it owned and zoned for future plant expansion... Toyota was stopped cold due to a family of owls... honest.

Toyota eventually decided to close a profitable plant and shift much of production to Texas and some to Canada.

5,000 plant jobs gone with another 5 to 10,000 related jobs gone from the region.

Two other issues hit really hard... the very high price of Electricity in California and Water Use to a lesser degree.

[Tulemutt]

Originally Posted by oldtrader

Why are California companies moving to other states, and bailing out of California and taking their jobs with them.

Only four reasons:

1---California has the worst attitude towards businesses than any other states, and is considered the most business unfriendly state in the country. Example: The company wants to increase the size of their plant, or establish a new manufacturing operation. It takes at least 2 1/2 years to get required permits, for any type of business in California. In Texas and most other states, it takes from 1 to 6 weeks. This means, if they come up with an idea to open a new operation, they can have it up and running in a month or so, OR 2 1/2 years later in California.

2---Taxes. California taxes on businesses is way above some other states.

Economic data paint a different picture, according to experts who study job migration and creation. For one thing, poaching of jobs does little to grow the economy of any state.
The Public Policy Institute of California studied this phenomenon over a 15-year period, from 1992 to 2006. It found that less than 2% of jobs lost in California were due to companies leaving, and only 1% of jobs created were due to companies moving in.
More recent figures were not available, but experts say it's unlikely that dynamic has changed, particularly given that the number of major corporate relocations and expansions nationwide has fallen sharply in recent years. According to Conway Data, which tracks site-selection activity, the number of big corporate moves last year was half what it was at its peak in the late 1990s.


Was Toyota driven out of California? Not so fast - latimes.com

There's not a big difference in corporate taxes between the two states, said Scott Drenkard, an economist with the Tax Foundation.

Was Toyota driven out of California? Not so fast - Page 2 - latimes.com

Etc.

[Restrain]

Consider the source of the 'study'. The source has a vested interest in current CA policies.

[nslander]

Originally Posted by Restrain

Consider the source of the 'study'. The source has a vested interest in current CA policies.

Ayep. The Tax Foundation is in on it too. We're through the looking glass, people.

[Tulemutt]

Originally Posted by Restrain

Consider the source of the 'study'. The source has a vested interest in current CA policies.

"The source has a vested interest in current California polices" being effective. They study things to determine efficacy and whether policies should be continued or discontinued.