It appears that Liberal California has just cost itself another major corporation to vacate the state. Recently packing its bags and moving to business friendly Texas, is none other than Toyota.
Although many people have speculated that the corporation is making its move eastward so that the company can be closer to its manufacturing plants, it appears as though that may not be the case. According to several analysts, this comes down to a numbers game, and that number has a dollar sign in front of it.
As Democrats continue to spiral out of financial control by taking on more responsibility than it can chew, its effects are now being placed upon the shoulders of residents. Americans, both individual and business, are now being forced to deal with the damages inflicted by corrupt and ignorant politicians.
That being said, other states that seem to have their finances responsibly in check, offer much better incentives. For instance, Texas has a 0% tax rate whereas California’s is somewhere around 8 or 9 percent. Now yes, 9 cents on every dollar may not seem like a bad thing, but multiply that by a couple million (and perhaps billion) and that distinction multiplies exponentially.
The only problem is that the company employs some 5,300 that ultimately will have to uproot and move to Texas in order to keep their jobs. Similar instances have happened such as Nissan back in 2005 where only 550 employees packed up and moved with the company and 750 decided to ride the unemployment train.
Businesses flocking out of the Liberal state is nothing new however as Torrance’s mayor, Frank Scotto explains, “When any major corporation is courted by another state, it’s very difficult to combat that. We don’t have the tools we need to keep major corporations here.”
Of course, if they were a little more frugal and financially conscious, perhaps they would be able to – instead their focused on making sure everyone has everything they want so as not to offend anyone. Put this in combination with the current state of the economy and you can see why taxes are so high as California tries to place a Band-Aid on its gushing carotid.
So what do you guys think – do you think it’s a matter of competition or that California is going down and businesses are trying to jump ship before it’s too late? Let us know by leaving a comment below.