Cristy Li

Socialism 101 –Image: Read My Mind

(WaPo) Last week, a California State Senate Committee not only discussed what they deem to be ‘economic inequality’  but by a vote of 5-2  it recommended to the full Senate, a bill that would raise taxes on companies which it determines, has a high disproportionate pay gap between corporate executives and employees.

Interestingly just this week Toyota Motor Sales & Toyota Financial Services announced  they will be vacating its headquarters from Torrance, California to the State of Texas which offered the company some $40 Million in tax incentives together with 30 years in the ‘Lone Star State’ tax free–end result, the City of Torrance, will be left a gigantic hole from losses of tax receipts in their budget they will have to somehow fill and the State of California will be losing some 3,000 more good paying jobs in addition to tens of millions in tax revenue that is gone forever.

Liberal/Progressive ideology may buy votes in my beloved deep blue State of California but it most assuredly doesn’t create a positive business climate.

In February, SF Gate reported that a new study conducted by Bain & Co for the California Business Roundtable–representing large corporations in the state found just under 60% of California business leaders said they have policies in place to restrict growth in the state and move jobs to other states–ironically the State of Texas was cited as the most frequent destination.

Another group of business executives, said their policy is to avoid adding jobs in California at all, except when absolutely necessary–the Bain study concluded, the cost of doing business in California is 30% higher than in an average Western state, together with the complexity of California’s environmental, labor and other regulations, the threat of litigation and delays in obtaining permits hamper operations, all create an anti-business atmosphere and a disincentive to continue to do business in California.

California already with the highest personal income tax in the country with a top rate of 13% compared to 0% for the State of Texas and a regulatory structure that treats businesses especially manufacturers as enemy combatants writes Investors Business Daily California has seen more than 250 major companies exit the state since 2011 and these problems are only destined to get worse, should Liberal/Progressive Democrats in Sacramento have their way of disincentivize wealth by taxing success.

How many more wealth creators (employers) and job opportunities will flee California to make somewhere, anywhere else their Golden State?