Millions flee California because of progressive tax system

California has lost billions of dollars in revenue in recent years as businesses and residents flee the state, in part because other states have a more favorable business climate.

According to one estimate, 254 businesses across a variety of industries moved all or some of their jobs out of state last year.

California has both the highest state deficit in the country and the highest personal income tax.

Silicon Valley, a unique business center thought to be particularly resilient to economic downturn, has also responded to the poor business conditions. In 2005, for example, Intel decided to build a multi-billion dollar chip-making facility in Arizona because of the state’s favorable corporate income tax system.

Utah and Texas have stolen skilled technology workers from California-based companies like Oracle, Adobe and Apple.

Small business owners are also increasingly trying to move to other states to avoid high taxes and cut costs.

“Part of [moving operations to Texas] was the cost of doing business in California,” Ronald Mittelstaedt, CEO of Waste Connections, told CBS News. “Highest tax rates in the nation. Until recently very expensive real estate. Tremendous regulation and really a broken legislature.”

Read more: http://dailycaller.com/2012/07/27/millions-flee-california-because-of-progressive-tax-system/

Can't blame them. CA will stupidly decide to raise taxes rather than cut back to pay for all their decadent waste.

I see the current economic state of California as a model for what is going to happen across the nation if we get four more years of Obama and a dead locked Congress. Those who have plenty of wealth will stay knowing they always have the option to leave, those who are too poor to leave will be trapped. The middle class will continue to shrink as the majority of the population becomes equally poor. Small businesses will continue to fail and large corporations will send their jobs over seas because doing business in America will be too expensive. What will happen when there are not enough revenue sources to sustain a massive Government that is handing out entitlements and welfare at higher rates than it is collecting taxes?

I think those with plenty of wealth, corporations and some small businesses will go to other countries with better tax laws. Why continue a business that only drains you of your profits to feed a decadent, gluttonous government.

otisptoadwater wrote: What will happen when there are not enough revenue sources to sustain a massive Government that is handing out entitlements and welfare at higher rates than it is collecting taxes?

I think this administration is shopping around for another credit card to max out... no worries.

Yet another lying story by the Toad. Businesses moving out of California to other states only amounts to 1.7% of their job losses, which is below the national average of 2% according to Public Policy Institute of California. The job losses in California are primarily to other COUNTRIES and businesses simply going out of business. What is funny is that the right wingers are crying about the drop in tax revenues when in fact California increased their tax revenue by 11% this year.

otisptoadwater wrote: I see the current economic state of California as a model for what is going to happen across the nation if we get four more years of Obama and a dead locked Congress ... What will happen when there are not enough revenue sources to sustain a massive Government that is handing out entitlements and welfare at higher rates than it is collecting taxes?

It will be great when we get the Republicans in there so they can shrink the federal government like they did during Reagan and Bush. rofllol

Ever been to the Silicon Valley area? Have to go there once a year or so and go into a Wal-Mart or Target and feel like a minority there. All you see are Asians and Indian's. No one speaks English.