California is one of the most awful states in the country for business. Corporate and personal income taxes are absurdly high. Housing costs are through the roof. And the Golden State has more bureaucratic regulations than any other state.
The result? Companies are pulling up stakes and moving.
This week, Investor’s Business Daily reported that Nestle USA is leaving Glendale, California and moving all those good paying jobs to Virginia. The $26-billion dollar per year food company has had enough of California’s high taxes and burdensome regulations.
William W. Roberts, former director of the San Fernando Valley Economic Research Center, said Glendale will suffer significantly from the 1200 job losses.
Roberts said California’s costly taxes, mandates and other requirements have made California a horrible place to do business, and that’s not likely to change anytime soon.
“I’ve been here for over 40 years and I’ve always heard about how unfair California is to businesses and how they are trying to improve that,” he said. “But every year it’s the same thing. It’s not a place that attracts companies because it’s so hard to do business here.”
But the liberal local politicians are calling Nestle’s departure an “opportunity” to fill all the empty office space with new jobs and new companies.
Darlene Sanchez, Glendale’s deputy director of community development, told reporters, “We’d like to see some more co-working space that would cater to the burgeoning technology industry that has organically grown here.”
Yeah. Good luck with that.
Over the past 10 years, approximately 5 million people have moved away from California, and the mass exodus appears to be accelerating.
According to IRS migration data, Texas has been the top destination for individuals leaving California since 2007. And why not? Texas, one of the reddest states in the country, is a job-creating machine.
And things are about to get much worse for California. Donald Trump is threatening to take federal funds from the Golden State if they designate themselves as a “sanctuary state”.
Is it any surprise that California is becoming a financial basket case? Share your thoughts in the comments section.