This is an excellent article and description of why businesses are leaving California and moving to more business friendly states. Tennessee aggressively recruited Carl’s Jr. with income tax incentives, lower occupancy costs and and substantially fewer regulatory hoops to jump through. In addition, the cost of living and the cost of housing is significantly lower making employee recruiting and retention much easier.
Tennessee made Carls Jr. an offer they couldn’t refuse…….and it’s happening more and more throughout California. In fact, California, as one of the worst rated states in America in which to do business, is ripe for the picking…..and the aggressive, more business friendly states are doing exactly that…..picking off California’s finest and enticing them to relocate.
Now, take that thinking a step higher to the Macro level where other countries are aggressively encouraging some of our country’s largest businesses to relocate out side of the U.S. They use the same attractive financial incentives, as our aggressive business friendly states do, to entice them to relocate. The biggest incentive is a reduction, or the elimination, of income taxes. If these companies do relocate, we lose jobs, tax revenue and all their potential growth potential. Since we can’t force these companies to move back to the U.S. or force them to employ Americans, we must adopt some of the strategies that our business friendly states do, and start offering them whatever tax incentives are necessary to move them back to the U.S. and, once again, begin employing American workers.
Bill Levy Santa Barbara
IGF Partners, LLC, Sr. Advisor