- Joseph Vranich of Irvine, California, United States and
'The Top Ten Reasons Why California Companies Are Calling the Moving Companies'
The #10 Reason Companies Leave California – Unfair Taxes: The Tax Foundation in their newest report lists California at No. 48 for tax fairness. CFO Magazine, which surveys corporate tax executives. ranked California the worst state in how it treats its taxpayers. That view is echoed by the Council on State Taxation finding that California is the worst state for tax laws – the only state to receive a D- grade. As the American Legislative Exchange Council pointed out: "Despite the dubious distinction of having both the highest statewide personal income tax and the highest state sales tax in the nation, California still finds itself with far and away the largest budget deficit of any state." In March, the National Conference of State Legislatures reported that California is still the number one state in raising taxes – raising them higher than the other 24 states that increased taxes in 2009.
#9 – Most Expensive Business Locations: The Rose Institute of State and Local Government in Claremont reported in its latest survey that California cities continue to be some of the most expensive locations to do business in the United States. That was confirmed by the Milken Institute, which found that California businesses are paying 23% more than the national average just to operate here.
#8 – Worst Performing Labor: The Pacific Research Institute last August found that California’s labor performance in a recent five-year period, at a ranking of 48, makes it among the worst performing in the nation.
#7 -- Dreadful Legal Treatment: The Civil Justice Association of California said the state ranks 44th in legal fairness to business. Los Angeles was again named the least fair and reasonable litigation environment in the entire country.
#6 – Worst Regulatory Burden: The consulting firm Bain & Co. constructed a “regulatory hassle index” that found "California is far worse than any other state by a very significant margin." This finding was echoes by Development Counselors International that found that 72 percent of surveyed corporate executives listed California as having the “worst business climate” in the entire United States.
#5 -- Harsh Treatment Motivates Exists: Again Bain & Co. found that more than half of California business leaders – an astonishing 60 percent – said they have policies in place to restrict job growth in the state or move jobs to other U.S. locations. Some companies are quite open about this, like Intel, which has said it will never build another plant in California, and McAfee in March admitted it intentionally avoids hiring in California, has transferred entire departments elsewhere, and saves about 30 to 40% every time it hires outside of the state.
#4 – Downright Unfriendly: The Small Business & Entrepreneurship Council in Virginia found that California ranked 49th overall in terms of business friendliness. That was echoed in February when The Mercatus Center at George Mason University ranked California 48th in economic, regulatory and personal freedoms in the 50 states.
#3 – Uncontrollable Spending: Extravagant spending causes California to now have the lowest credit rating of any state. A recent poll shows that 83% of this year’s likely voters believe the state's budget situation is a big problem. A Stanford University professor interpreting the polls concluded that people are much angrier about California government – more than they've ever been in recorded polling history.
#2 – Excessively Adversarial: For two years in a row Chief Executive magazine found California to be the worst state in the nation in which to do business. Said one CEO, “California is terrible. Even when we’ve paid their high taxes in full, they still treat every conversation as adversarial. It’s the most difficult state in the nation.” The magazine calls California the “Venezuela of North America.”
And the #1 Reason – Unhappiness: The nine reasons above have a cumulative impact that results in unhappiness. This year LiveScience.com reported that California ranks 46th on a national "Happiness" list and our political culture and policies cause problems for those who attempt to attract and retain businesses.
If anyone thinks only the Tea Party people are upset with the way California government is run, note that I just cited 17 sources and not one owes its existence to being an anti-tax organization. "