New Study Forecast: More Companies Will Leave California

[James Park]

Irvine , CA
Thursday, January 07, 2016 

According to a new study of companies leaving California during the last eight years, the state's business climate will worsen because of a multitude of proposed tax hikes and new regulations – measures sufficient to motivate more company departures.

The study by Spectrum Location Solutions is critical of extending the "temporary" taxes in Proposition 30, escalating fuel and motor vehicle taxes, imposing a service tax on routine transactions, raising carbon-related cap-and-trade fees, and threatening to weaken Proposition 13's protections for business property owners.

"California's public officials come across as being uncaring about the damage they inflict on businesses, investors, employees and their families, and to the towns that lose jobs," said Joseph Vranich, the study's author. "With a growing number of California activists demanding higher taxes and more regulations, look for an increase in the number of companies seeking to leave the state."

The conclusions are contained in a report that shows Fortune 500 companies down to small family-owned companies relocating and expanding in out-of-California locations that offer more satisfying business and lifestyle outcomes....

The report ranks the Top 15 California Counties in the order starting with the worst losses, which are: (1) Los Angeles, (2) Orange, (3) Santa Clara, (4) San Francisco, (5) San Diego, (6) Alameda, (7) San Mateo, ( Ventura, (9) Sacramento tied with San Bernardino, (10) Riverside, (11) Contra Costa tied with Santa Barbara, (12) San Joaquin, (13) Stanislaus, (14) Sonoma and (15) Santa Cruz.

The Top 10 States in the order starting with those that gained the most are: (1) Texas, (2) Nevada, (3) Arizona, (4) Colorado, (5) Washington, (6) Oregon, (7) North Carolina, (8) Georgia, (9) Florida and (10) Utah tied with Virginia. Texas was the top destination each year during the eight-year study period.

[Account Closed]

James,

As much as I dislike the taxes, politics and bureaucracy in CA, I can make an opposite argument for it. Birds of the same feather flock together. If you look at the wealth and the innovations came out from the Silicon Valley alone, they're more than all of those states combined. Rich people vote with their checkbook. Look at where VCs invest their money? Doesn't CA have been the number one state leading all other states by a mile?

When you're the king, others will try to dethrone you. Look at the people that come to the state and the people that leave the state.  Your article says the low and middle classes making $50k or less are leaving California.  It makes sense because they can't compete here. California has been the land of opportunity.  Talented people are getting handsomely rewarded.

It seems like a lot of couples in their late 20's and 30's here making a combined $250k-$350k are the norm here in the Bay Area.  It's sickening when I'm reviewing their rental application and see how much they make.  Andrew bought 3 homes from you. You saw his tax returns.  He and his wife are the norm in the Silicon Valley.  Ironically, these people consider themselves as middle class.  LOL!  Just put things in perspective.

My partner and I have been hanging out with a group of very successful business men and women.  Some of them don't even have a high school diploma, and they're making over $100k/month.  Yes, that's per month, not year.  They are some of the best and open-minded people with whom we have ever dealt. My little sister is the chosen one to be one of the partners in their biz.  She quit her W2 job to follow this path full-time. I'm investing in her now.  I'm quite sure it will pay-off at least in 10 folds.  

California is the land of dreamers and opportunists.  This is where dreams can become reality.  It's where people come to create the life that they want and desire.  It's not for the faint of heart. The sad thing is that you have all the politicians and government agencies who squeeze themselves in the middle of all these, try to justify their relevancy, and think they know better than all of us.  They're the ones that are sucking the Golden State dry.  Sigh.......