A recent landmark business location study found that there has been a "mass exodus" of more than 10,000 businesses from the Golden State due to a deteriorating business climate, particularly high taxes and onerous regulations.
The report, titled "California Business Departures: An Eight-Year Review 2008-2015," takes detailed look at the data and actually catalogues all the business departures over the time period. The report was produced by Spectrum Location Solutions in Irvine, California.
"California is considering imposing the most ruthless set of taxes ever placed on businesses--a tsunami of levies that may trigger the worst raid on private sector finances ever organized by the state's politicians. One result will be an increasing number of businesses leaving California for greener domestic or international pastures," stated Joseph Vranich, the principal at Spectrum Location Solutions.
"Public employee unions are insisting on a multi-year extension of Proposition 30, which pushed income and sales taxes to the highest in the nation," Vranich stated.
Prop. 55 on the November 2016 ballot essentially doubles down on Prop. 30's approach, boosting the state's top income tax bracket on small businesses and job creators by a hefty 23% to a top rate of 13.3%. The measure, which is projected to raise $8-11 billion represents double the impact of Prop. 30.
Prop. 30 was narrowly enacted by California voters in 2012 and is credited with leading to a large drop off in tax revenues in 2013 and forcing tens of billions of dollars in business activity to move outside of California.
Vranich's report details thousands of specific examples but says that the actual departures are projected to be far worse because most companies do not try to attract the attention of the media when departing the Golden State.
In 2015 alone, there were a number of high profile departures. AAA Northern California is headquartered in Emervyille, CA but chose to move its 600 job call center to Clearfield, Utah.
Kaiser Permanente has three times as many members in California as its eight other state's combined but is now choosing to expand outside of California including a new $20 million information technology campus in Atlanta, which will create 900 jobs.
Toyota Auto Body California is "relocating some production to San Antonio, which could lead to 95 full-time workers losing their jobs at its manufacturing plant in North Long Beach, CA. Full-time employment at the plant will decline from about 400 full-time workers to about 300 people by the end of 2015," states the report.
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