Question: Why would I want to put a new business in California? (Los Angeles: middle-class, rental)

[silverkris]

Look, companies will locate in an area depending on their industry, market access, access to allied services and industries. Taxes and cost of living may be a secondary issue, depending on the circumstances. It's not so simple.

New York is still the center of the finance world despite its high cost of living and tax rates. Or maybe the COL is high because of the highly paid financiers.

You want to make it in the oil and gas industry? Go to Houston. Lots of qualified people in the industry, many service companies, and you can get direct flights to Nigeria and Venezuela from IAH.

For tech - Silicon Valley is still a destination. The talent, the culture of entrepeneurship, and the access to capital.

[oldtrader]

For tech - Silicon Valley is still a destination. The talent, the culture of entrepeneurship, and the access to capital.

Silicon valley, is far behind some other cities in the U.S. in developing STEM jobs. It is only # 7 in high tech jobs. STEM jobs which are what the high tech industries use such as engineers, software designers, etc., etc., are down 12.6%, which has been losing jobs for the past 10 years losing 170,000 stem jobs total.

Interestingly, Silicon Valley isn’t in the top five for gaining Tech/Stem jobs despite the preponderance of high profile tech companies there. In fact, despite offering the most tech and STEM jobs in the U.S., Silicon Valley employed 170,000 less folks in 2011 than in 2000.

What Metros are Growing the Fastest in Tech/STEM jobs? | Catch of the Day

Silicon Valley is listed at 7th place, and losing STEM jobs.

Methodology - In Photos: The Best Cities For Tech Jobs - Forbes

The jobs that have been lost, are going other places, and the other places is where the new High Tech/STEM jobs are being created.

[armourereric]

Originally Posted by oldtrader

Again shows you do not know what you are talking about. List of top most polluted cities in U.S. Texas does not make the list, But #1 is Bakersfield, #2 Los Angeles. Others in the same general LA area, are included. Top 5 are all in Southern California. Remember, of the many deaths in the U.S. due to Air Pollution each year, half of them are in California.

America's Top 10 Most Polluted Cities - weather.com



Again, you really do not understand wages in the country, when they are adjusted for cost of living.

Houston is #1 highest wages in country. San Jose is #2, and the only city in California in the top 10. Texas has several in the top 10.

No. 1: Houston-Sugar Land-Baytown, TX - In Photos: The Cities With The Highest Income When Adjusted For Cost Of Living - Forbes

I think were both are in error on the pollution aspect: Here was the list I was thinking of when I made my post, it is from the American Lung Association:

#1: Los Angeles-Long Beach-Riverside, CA
#2: Visalia-Porterville, CA
#3: Bakersfield-Delano, CA
#4: Fresno-Madera, CA
#5: Hanford-Corcoran, CA
#6: Sacramento--Arden-Arcade--Yuba City, CA-NV
#7: Houston-Baytown-Huntsville, TX
#8: Dallas-Fort Worth, TX
#9: Washington-Baltimore-Northern Virginia, DC-MD-VA-WV
#10: El Centro, CA
#11: San Diego-Carlsbad-San Marcos, CA
#11: Merced, CA
#13: Modesto, CA
#14: Cincinnati-Middletown-Wilmington, OH-KY-IN
#14: Birmingham-Hoover-Cullman, AL
#16: Las Vegas-Paradise-Pahrump, NV
#17: Louisville-Jefferson County-Elizabethtown-Scottsburg, KY-IN
#17: New York-Newark-Bridgeport, NY-NJ-CT-PA
#19: Charlotte-Gastonia-Salisbury, NC-SC
#20: Oklahoma City-Shawnee, OK
#20: Philadelphia-Camden-Vineland, PA-NJ-DE-MD

But seriously, 20% of my corporate sales go to Texas, of which 1/2 were formerly in California, they want to move back.

[backhomenanny]

Originally Posted by Woof

So does this mean that the unemployment rate in California is rising now?

Actually it is according to the BLS
My family has been a multigenerational California family going back to the Gold Rush years however with the way things have become in this state we are seriously considering moving to either Texas or Indiana.
We have family in both states and when we visited them first thing we notice is gasoline prices are atleast 50 cents or more cheaper. 3.50 for gasoline in Indiana, or 3.40 in Texas.
2nd is taxes and regulations are seriously hurting our businesses ability to maintain a profit. Why should I work hard for my business when 50% or more of it is taken away with federal and state taxes?
If I moved my business to say Indiana where they have a much lower income tax or even texas with no income tax I can easily saved hundreds of thousands of dollars every year. I don't know of anyone that would work for 100,000 for a year just to have it all taken away from taxes. Why work then? I don't understand the hatred for success either. Being a small business owner I'm NOT guaranteed a salary. I could very easily lose money in a month and not get paid.

What really is sad is our governor Moonbeam brown bashing Rick Perry for going after businesses in California and offering them a 1 way ticket to Texas. I mean really? does he not see the problems California has? how stupid can a politician get?

[user_id]

Originally Posted by backhomenanny

Why should I work hard for my business when 50% or more of it is taken away with federal and state taxes?
If I moved my business to say Indiana where they have a much lower income tax or even texas with no income tax I can easily saved hundreds of thousands of dollars every year.

Firstly, any business owner that is paying 50% of his/her income in taxes needs to hire a new accountant. Secondly, moving to Indiana will save a business owner, at best, 1~2% on taxes. The tax burden in California is not dramatically higher than other states, its just a 1~3% higher than some of the small red states.

In any case, if you think Texas is a better fit for you....move to Texas.

[user_id]

Originally Posted by oldtrader

Silicon valley, is far behind some other cities in the U.S. in developing STEM jobs. It is only # 7 in high tech jobs. STEM jobs which are what the high tech industries use such as engineers, software designers, etc., etc., are down 12.6%, which has been losing jobs for the past 10 years losing 170,000 stem jobs total.

Interestingly, Silicon Valley isn’t in the top five for gaining Tech/Stem jobs despite the preponderance of high profile tech companies there. In fact, despite offering the most tech and STEM jobs in the U.S., Silicon Valley employed 170,000 less folks in 2011 than in 2000.
.

You're stuck on repeat. As I've said before, Silicon Valley dominated STEM for decades so the fact that some STEM is diversifying out of the Silicon Valley is only natural. Its exactly what you'd expect to happen regardless of the business environment in California.

[oldtrader]

You want to make it in the oil and gas industry? Go to Houston. Lots of qualified people in the industry, many service companies, and you can get direct flights to Nigeria and Venezuela from IAH.

A lot of people make it in the oil and gas industry right there in California, you don't have to go to Houston to be able to work in the oil industry. California is 3rd in oil production only behind Texas and Alaska.

[oldtrader]

You're stuck on repeat. As I've said before, Silicon Valley dominated STEM for decades so the fact that some STEM is diversifying out of the Silicon Valley is only natural. Its exactly what you'd expect to happen regardless of the business environment in California.

The problem is, that Silicon Valley once dominated STEM jobs, but they are now losing them. Other states are gaining them hands over fists as they say. A big reason that California has such a high U6 unemployment rate. Now 18. 6% of the population as of the second quarter of July (last month), the latest figures released. And for cities, Los Angeles leads at 20%.

You think it only natural that some STEM jobs are leaving the Silicon Valley. When other states are increasing by leaps and bounds. The trend has turned, and the Silicon Valley is headed for serious problems as it is not increasing in STEM jobs, when in many other parts of the country they are rapidly increasing. Stem that flow out, or in a few years, there will be serious problems in the area.

[oldtrader]

Originally Posted by Woof
So does this mean that the unemployment rate in California is rising now?

As backhomenanny says, Actually it is according to the BLS

California

[user_id]

Originally Posted by oldtrader

The problem is, that Silicon Valley once dominated STEM jobs, but they are now losing them. Other states are gaining them hands over fists as they say. A big reason that California has such a high U6 unemployment rate. Now 18. 6% of the population as of the second quarter of July (last month), the latest figures released. And for cities, Los Angeles leads at 20%.

That is only a problem if the jobs aren't being replaced by other industries, but given the low unemployment rate in the Silicon Valley, they are clearly being replaced. And to say it once again, the fact that STEM jobs are diversifying out of Silicon Valley is only natural and says nothing about the business environment in the Silicon Valley.

Bringing up California's U-6 rate of unemployment its just an attempt to kick up dust, California's U-6 rate has the same proportion to its U-3 rate as other states. In generally, a states U-6 rate is double its U-3 rate. California's unemployment rate has declined over the last couple of years, while the Texan unemployment rate has increased this year. Funny, that you're not over in the Texas forum ranting about the weakness of the Texan labor market.