California's unemployment rates: What can be done? Unreal! (Orange: real estate, mortgages)

[UB50]

You know, I've always noticed something funny about these states that are ranked as "best places to start a business." The people doing the ranking usually look at the typical things like taxes, minimum wages, etc. The best states always end up being places like Florida, Nevada, Texas, etc. Places with low taxes and low regulation.

On the flip side of that, I see tons of businesses that open up here in California (which is usually ranked near the bottom of the places you want to start a business) and these businesses grow and thrive! Trader Joes, 99 Cent Only Stores, Zankow Chicken, Panda Express, Pinkberry, Craigslist, and that's just the few I thought up in a few seconds. If California was so awful for business, this would not be happening!

I've met at least one person on the Internet who had a thriving business in Orange County but got pissed off over the taxes he was having to pay. He sold his business and moved to another state where taxes were far lower -- but so was demand for his product. Would you rather pay taxes of 50% on $1,000,000 every month or taxes of 20% on $60,000 a month? People really need to think long and hard before they move if they are making good money in California. They may not be able to make the kind of $$$$ they made here in another state.

[CAVA1990]

Originally Posted by UB50

I've met at least one person on the Internet who had a thriving business in Orange County but got pissed off over the taxes he was having to pay. He sold his business and moved to another state where taxes were far lower -- but so was demand for his product. Would you rather pay taxes of 50% on $1,000,000 every month or taxes of 20% on $60,000 a month? People really need to think long and hard before they move if they are making good money in California. They may not be able to make the kind of $$$$ they made here in another state.

Another "have your cake and eat it too" strategy - move your business somewhere else and sell over the internet to all those Californians.

[native56]

Few people move only for tax reasons. California's high taxes are just another reason among the many others for a business to leave. Ask any business owner what his three greatest problems are in operating in CA. Government will be on everyone's list. And CA has far too much government.

[hoffdano]

Originally Posted by Reason42

Employment, progress, growth, environmental impact, global competition...

The attainment of civilization has a cost.

Wisdom seeks a balance.

California is presently too far to one side... China, Mexico, Russia, India, Brazil, and many other developing nations are too far one the other...

But.

IMHO, most of the reported data is terribly biased by the addition of "green house gases"... ...gases poorly supported in the literature to POSSIBLY increase global warming, by affecting global processes. The processes involved in world weather patterns and organic/inorganic cycling are far too complex and truly massive to be generalized.

I agree. This thread is about California unemployment. There are 2.3 million people in California who want a job and don't have one. I don't think it is just going to fix itself as the national economy slowly improves. Businesses aren't leaving California in droves. And new companies will continue to be launched because of some of California's best assets - intellectual talent for example.

But it seems unlikely that high housing costs, even with depressed home values, will materially ease soon for the middle class. I sense that many Californians are still overconfident that their famous successes like Google, Apple, and Intel automatically secure the future for them. The state government fiscal problems will continue to apply very strong pressure on taxpayers (both individuals and businesses) and this will drag on employment growth.

[henry1]

Originally Posted by UB50

You know, I've always noticed something funny about these states that are ranked as "best places to start a business." The people doing the ranking usually look at the typical things like taxes, minimum wages, etc. The best states always end up being places like Florida, Nevada, Texas, etc. Places with low taxes and low regulation.

On the flip side of that, I see tons of businesses that open up here in California (which is usually ranked near the bottom of the places you want to start a business) and these businesses grow and thrive! Trader Joes, 99 Cent Only Stores, Zankow Chicken, Panda Express, Pinkberry, Craigslist, and that's just the few I thought up in a few seconds. If California was so awful for business, this would not be happening!

I've met at least one person on the Internet who had a thriving business in Orange County but got pissed off over the taxes he was having to pay. He sold his business and moved to another state where taxes were far lower -- but so was demand for his product. Would you rather pay taxes of 50% on $1,000,000 every month or taxes of 20% on $60,000 a month? People really need to think long and hard before they move if they are making good money in California. They may not be able to make the kind of $$$$ they made here in another state.

but the smaller business start up i see from first hand of haveing to deal with the state of ca to the path of owning a small business in the state it far from the normal way of doing business in another state. from the amount of money need for a small business lics to health lics to state taxs it was just to hard to start something that could helped the local area with jobs .. .

it was easlyer to deal with the federal goverment on the the federal taxs issuse than it was with dealing with the state about the whole start up for a small business .for three months we fought with the state over just getting the tax code issuse worked out them over how we going to take the taxs for the people of Ca who order the products online. not the people from outside the state

at one point the comment was made that we need to make the people who had order from the outside the state pay the ca sales tax because it was order in the state.. as our lawyer who was helping us said no that not right and you people know that .. ..so we just went and said forget about starting the company in the end ..we would hired about 40 to 60 people in the first two years to work the jobs that where going to be needed at the factory . ..

my business would have been online company that dealt with the needs of people who want sugar free pies and cakes to be made in a glass canning jar then shipped out to them plus have a store front at the building for people to come get them also ..to keep the price at a normal level instead of overpriced i seen here on the internet price ..for the three people involved in the dealing we are all border line diabetcs and have to watch the sugar intake in our lifes ..

i been here almost 4 years now and when i got here in my little town where i live now there was alot of the little mom and pop places in the area iam liveing at now most of them are gone

it also seams to me that for every one person is moveing here about 5 are leaveing the state to get away from the taxs and dealing of the state over money issuse of the state trying to reach into your pocket for everything from simple crv to anything else they can add a tax on ..

here in my area of the state modesto area it seams that the business are not hireing but anyone over the age of 25 and it seam it all college level personal that they want right now..to a lot of the socalled 40 and up crowd of job hunters it gotten worse for them in the long run and a little scary at times for them ..

my landlord was out of work for over two years for he worked for gallo wines in the area as a lab tech they had down sized the dept over a course of a couple years intill he was left and then give him his package to leave the company they did this with a lot of people ..then three months later they hired a new crew to do the job there and guess what they are all young saight out of the college level schools for the job at the gallo wines..

he just found another job with another company doing what he did as a lad tech there at the company ..but as he says it when and if i get a chance to get out of the state iam gone also ..plus a lot of companys out here are beening really pickly about who they hire also ..

so the state is really bad off and it not going to get better intill as one person said we have to draw the companys back to the state with some basic things and as one person said tell mrs boxer the valley need water not to protect some 3.inch smelt fish along with lighten up some of the rules about starting a small business out here and stop with trying to tax everything to death here even death has been taxs now ..

[CAVA1990]

Originally Posted by henry1

so the state is really bad off and it not going to get better intill as one person said we have to draw the companys back to the state

Or the unemployed move elsewhere which is probably what they should be doing.

[Gentoo]

Originally Posted by CAVA1990

Or the unemployed move elsewhere which is probably what they should be doing.

Well, I'm going to have to agree with you for once. Many unemployed are moving elsewhere. I have a lot of family relocating to Phoenix.

Don't get me wrong, I completely understans what UB50 is saying regarding the trade-off of taxes vs. income. When times are good, that makes perfect sense. In this economy however, businesses simply can't afford to pay a lot of taxes because with so many unemployed people, there won't be that much spending so business won't really do well.

Everyone likes to talk about Texas. Washington state is perhaps one of the best places to start a business. It has the lower taxes of Texas but a market more similar to California's. Just look at the businesses in Seattle for example; Nordstrom, Starbucks, Amazon.com, Costco and Microsoft to name a few.

With California's unemployment as high as it is we can get people jobs but we don't have enough people spending money to make opening a business here worth it right now.

[hoffdano]

Originally Posted by CAVA1990

Or the unemployed move elsewhere which is probably what they should be doing.

Ahh. So your plan to reduce unemployment is to get the job-seekers to move away.

[CAVA1990]

Originally Posted by hoffdano

Ahh. So your plan to reduce unemployment is to get the job-seekers to move away.

That would be a lot simpler than moving whole companies around, yes. You could find a job tomorrow here in NoVA. Perhaps one thing the government should consider is offering relocation grants or loans to unemployed workers.

[CAVA1990]

Originally Posted by Gentoo

Well, I'm going to have to agree with you for once.

I thought we agreed on most things.