Town Square

Post a New Topic

CNN story about businesses fleeing California

Original post made by Steve on Jul 12, 2011

Please read the story at the link below from CNN regarding the exodus of businesses, big and small, from the once Golden State.
Web Link

Specifically cited as reasons jobs are leaving the state are "high taxes, strict regulations and uncertain state budgets".

I wonder if there's a way to not only stop this trend, but also reverse it before the state files for bankruptcy. The status quo won't cut it anymore...the gravy train has left the station.

Comments (40)

Posted by Hey b!, a resident of Another Pleasanton neighborhood
on Jul 12, 2011 at 4:09 pm

Hey b! - Looks like you are going to get your wish. Looks like you will have much more room for you and your public union buddies in CA. It will be interesting to see where you get your tax revenue for your bloated salaries and pensions.

Last time I looked, people on welfare don't pay much in taxes.

And many of your public union buddies are retiring with disabilities (so they don't pay taxes) or are retiring out of state.

Best of luck with your union and progressive infested house of cards!


Posted by World Collapsing!!!, a resident of Deer Oaks/Twelve Oaks
on Jul 13, 2011 at 6:49 am

It's something in the drinking water. Despite heavily biased hit job pieces like this one from CNN, Cal's citizens keep voting in Democrats. Personally, I'm moving to Texas to get myself one of those newly available, highly desirable jobettes.


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 13, 2011 at 7:24 am

Ronald Reagan was right It's obvious we do not need govt in our lives. I personally have it on good fact that Enron wouldn't have collapsed had it not been for unwarranted govt'l intervention. And look what's happening with the crucifiction of Rupert Murdoch! The state is being merciless in its persecution of the poor fella. These things wouldn't have happened in pre-Hugo Chavez Venezuela. And what about the 13 Founding Fathers? You think they would have approved air pollution controls? Wake up California before everyone move's to Texas and Alabama.


Posted by TARP, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 7:33 am

Distort and redirect all you want while the reality of the situation continues to inconveniently present itself.

The reality is that union controlled tax/spend Democrats have owned this state for a long time and this is the result of their policies. Even now unions/labor groups are tone-deaf to poll results and are splitting with Brown and charting new ways to increase taxes.

It is only a matter of time before these self-destructive policies beget a leadership change - just like in NJ where Democrats were shocked that someone like Christie being voted in as Governor. And before you go down this route, Arnold was a joke and did nothing he promised to fix and streamline government.


Posted by Reality Strikes Home, a resident of Downtown
on Jul 13, 2011 at 7:36 am

Yes, a leadership change is coming! Just look at the results of last night's election. Wait. Check that. Don't do that. Sorry.


Posted by steve, a resident of Parkside
on Jul 13, 2011 at 8:39 am

The continual voting for Dems and the annoyingly sarcastic tone of the troll's posts above, indicate their may be something in the water here causing ADHD amongst the lemmings who voted for this mess.
I guess the tainted water has affected me as well, since I keep hoping someone will post a response that resembles a thoughtful consideration of the problems they refuse to acknowledge. My bad....


Posted by Scared for the Future of this State, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 9:17 am

I don't know how more blatantly obvious one can make the point that raising taxes is hurting CA. This is one of the most hostile states for businesses, hence businesses are find new homes in other states that appreciate them. The departure of these business leads to the departure of tax paying employees that purchase homes, cars, goods, etc. Doesn't the personal income tax and sales tax on items bought count as revenue too? We don't need to continually increase the tax rate, we need to maintain and increase the number of tax payers. How do we do that? Make it attractive to business owners to stay here.


Posted by b, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 9:20 am

I've been hearing the same old story every few years, for at least the last 20 years.

All the old, conservative farts are moving to Texas to enjoy each others' company, celebrate lower taxes, and live in $200k McMansions in that miserable place.

And then new, cool, open-minded young people replace them here.

This remains an amazing place to live and work, despite what the Chicken Littles tell you. No abandoned homes or empty freeways in my neighborhood.


Posted by Hmmmmmm, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 9:36 am

Not all businesses are leaving. In fact, Mark Z., not from California, felt it necessary to come to the bay area to grow his company, and he did. Facebook is a relatively new company about to go public, which employs many. I could cite other examples but you get the point. The real money makers, innovation type companies are in California and come here because this is where they know they can make it.

That said: the pension/union stuff must be reformed since the expense is not sustainable. Illegals must be deported and that right there will reduce costs in the areas of education, welfare and healthcare.


Posted by Texan, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 9:37 am

It is old experienced farts who have the money for capital formation for business creation, start and build companies, hire people and pay taxes.

Best of luck without us. Your erosion of state metrics are speaking much louder than your wishful thinking.


Posted by Yet Another Texan, a resident of Bonde Ranch
on Jul 13, 2011 at 10:43 am

Yep, you should see all the new businesses: sidewalk taco stands sprouting up all over the place in Houston and Dallas and all the other idyllic cities across our beautiful dustbowl state. And with the nation's highest number of school drop-outs and jobettes, what's not to like? I'd live there myself if it weren't for my asthma. Dust, pollution, and other accoutrements of liberty don't do my lungs any good.


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 10:50 am

Funny how defenders of CA's dismal progressive record don't/can't talk about the positives but instead try to tear down the other positive examples.


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:07 am

For those using amazon as an example: amazon also left a city in Texas when told about taxes. It is not just California that amazon is leaving, but after a while if it leaves enough states...

Read about amazon's troubles in "friendly" Texas:

Web Link


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 13, 2011 at 11:10 am

Let's see. Texas sums up it's record: one less Amazon, three new sidewalk taco stands. Total: two new job-creating businesses in the state. Let's elect Perry as Pres! What's not to like?


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:15 am

and read here about Amazon leaving South Carolina:

Web Link

and about Amazon leaving Illinois:

Web Link

Amazon has left other states. I wonder if soon the company will either go belly up or set up a sweat shop in China?


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:25 am

Texan and Another Texan:

You should read this:

Web Link

It speaks of amazon's troubles in your "friendly for business" state of Texas. And no, it is not from the "mainstream" media but from your favorite right wing news source: Fox.

Texas may not have income tax for individuals, but property taxes are in the 3%+ or higher, and there is no prop 13. I used to pay more in taxes in Texas for my 250K house than when I bought a house here in the bay area for more than 500K. Why? Each year they raised my property taxes in Texas, and yes, I would challenge them but without success.


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:35 am

Nice stretch - once again trying to tear down other examples. Even more - connecting dots that just aren't there. Amazon is leaving states for the the sales tax issue. It is all over the news. Tell me, is Amazon growing or shrinking. Last time I looked, they are still growing.

And the total tax burden in TX even with their higher property tax is much lower than CA. I've done the calculation. Plus you could look at any state tax rating to see the different.

But this isn't about TX. It is about the dismal progressive record of CA and our driving away businesses and jobs. Hence why our unemployment rate continues to be much higher than the national average.

People will talk about all the cool/hip companies that are making moves towards CA but what they won't talk about are the special tax breaks those companies are being bribed with to stay (e.g. Twitter in SF) and the much larger number of jobs that are leaving the state.

Why not correct the tax/business environment for all to attract more businesses? Because this would mean the dismantling of the progressive welfare state plus it would mean saying to to public employee special interests.


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:40 am

Here is a homebuilder leaving Texas to settle in Utah and California, read on:

Web Link


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:52 am

Another article, from the Fort Worth Business press, about companies moving OUT of Texas:

"Although Texas has deep roots in oil and energy, new technology is leaving Texas and moving to the coasts to develop and grow.
Ninety percent of patents that are created in Texas enter into agreements where venture capitals are prominent and leaving the state for the West and East Coasts, said David Chappell, leader and chairman of the North Texas Regional Center for Innovation and Commercialization."

"The technology follows the money," he said.
Bundles of money are in California, Massachusetts, North Carolina and Georgia and that's where the technology is going, Chappelle said.
And that's also where the jobs are headed."

Full article:

Web Link


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 11:55 am

Talk about a classic case where someone refuses to see the forest and instead looks for trees to prove a point. Pretty funny.

Tell me oh wise one, which state has a lower unemployment rate? Which one has a macro problem with companies fleeing the state?

But again, this isn't a TX vs. CA debate. It is only the CA apologist who continue to bring up examples with the hope of fooling people that things aren't that bad in CA or that things are equally bad in other states.

Like I tell my kids, you can't begin to fix a problem until you first acknowledge there is a problem.


Posted by steve, a resident of Parkside
on Jul 13, 2011 at 11:57 am

Again with the ADHD. Typical, if you can't address or even acknowledge the problems here, you trolls deflect the comments to Texas, as though their problems were unique and that we don't have a multitude of additional issues over and above theirs. Why didn't you use Michigan as an example--oh, they are one step ahead of us, with hordes leaving the once proud union state, bankrupted by short sighted, greedy organized labor.
If you don't like the climate or scenery in Texas, don't move there, but for God's sake quit acting like we don't have bigger problems here, brought on by policies of ineffectual liberals.


Posted by unclehomerr.., a resident of Downtown
on Jul 13, 2011 at 12:01 pm


2012 is your chance to vote for REAL Hope And Change!!

PALIN/BACHMAN - 2012

unclehomerr..


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 12:06 pm

You are only hoping it will be Palin/Bachman to make it easier to re-elect Obama.

Hopefully, a reasonable a candidate like Romney will make it through the Republican Primary process to attract independents like me.


Posted by TP, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 2:51 pm

Texas seems to be attracting low skilled, blue collar jobs and is actually losing white collar jobs.

Web Link

4. Texas
Median Income: $48,199 (21st lowest)
Change in Median Income: +22.3% (18th smallest increase)
Unemployment: 8% (23rd lowest)
GDP (millions): $1,106,236 (2nd highest)
Decrease in % of workforce that is White Collar: -0.41%

From 2001 to 2010, the Lone Star State had an annual employment growth rate of 1.15%. Better still, since the end of the recession through April 2011, 37% of all jobs created in the U.S. have been created in Texas, according to the Dallas Federal Reserve. As an oil-rich state, this job growth has primarily been for blue-collar jobs, however. White-collar job growth has simply not kept up. Of the 818,000 jobs created between 2000 and 2010, less than half were white collar, causing the overall percentage of white-collar workers to decrease. Additionally, the state lost over 200,000 management jobs, and over 7,000 architecture and engineering occupations.

Web Link


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 4:07 pm

More fixation on tearing down the states who are performing better than CA with the hopes of diverting attention from the obvious problems we have here.

This isn't about putting TX on a pedestal so you can knock it down. It is about the sorry state that CA is in.

And now it is about all the progressives on this blog who still refuse to face reality. Your comrades in Greece are calling out for you. They need your help to protect their entitlements. Once you help fix the leak in that damn, maybe they will come here to help you hold up your crumbling edifice.


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 4:14 pm

"This isn't about putting TX on a pedestal so you can knock it down. It is about the sorry state that CA is in."

We are not ignoring the problems facing California, such as union and pension reform. But the article from cnn and many who have posted here, including Texan and another texan, seem to think that Texas is better and companies are going there in numbers...not so! Read article after article: companies are getting out of Texas.

As for budget deficits: all states have that right now. Minnesota for instance has shut down the government, etc.

California is not in good shape but neither are other states under republican leadership (Texas is about as red as they get, and they have budget deficits over there - why do you think they tried to charge taxes to amazon?)


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 4:28 pm

Forgot to include the link about Texas and its economic woes:

Web Link

and here is another one:

"states like Illinois, New Jersey, New York, and California are supposed to be in huge financial trouble thanks to bloated governments, business-unfriendly regulations, and strong public sector unions. "

"But there's one state, which is fairly high up on the list of troubled states that nobody is talking about, and there's a reason for it.

The state is Texas."

Read full article:

Web Link#

other states with budget problems:

Web Link

(notice how the list includes blue states like California but red states like Texas and Arizona as well?)


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 13, 2011 at 4:40 pm

"Hopefully, a reasonable a candidate like Romney will make it through the Republican Primary process to attract independents like me."

I hope so too because I do not want to vote for NObama again (I did so in 2008 and you have Palin to thank for that)

I am not too optimistic though. It seems like the GOP wants to win based on the anti-Obama sentiment, but I can tell you that as an independent, I would never vote for the extreme right, not Bachmann, not Palin, you get the picture.

The problem with democrats: too much spending, too pro-union, think taxes are the only solution, cannot reduce spending (look at the size of the govt under Obama)

The problem with republicans: they think being conservative means being backwards in social issues but liberal on spending (think Bush W) and they insist on very dumb candidates (it is a surprise to me to see how many actually pay attention to Palin and Bachmann, wow!)


Posted by dublinmike, a resident of Dublin
on Jul 13, 2011 at 9:27 pm

dublinmike is a registered user.

I have three answers.

First, location will often determine the point of business initiative or artistry creativity. For example, San Francisco, in spite of its left-leaning, high taxes, etc., is a very attractive place to be for creators and those that wish to make an impact.

Second answer, once the creative, innovators are out, then it's second locations such as Fremont, Milpitas, Sunnyvale, et al.

Third? Nevada, Texas, Alabama, TN, Mexico and other third-world countries. Get the point?

Cheers.


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 14, 2011 at 7:28 am

Not just CA - I too am an Independent - fiscally conservative but socially progresses. I agree with your comments above regarding Republican candidates.

Hopefully one day either party will figure out that responsible government (living within ones' means) coupled with the appropriate governance in other areas is the winning ticket for many Independents.

Unfortunately for Obama who I voted for last time, I no longer trust that he will take the centrist road but we will see. It is a while before the next election. My sense is that he is trying to play the centrist to get re-elected but fundamentally is much farther to the left.


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 14, 2011 at 8:25 am

There is a batch of companies in and around Los Angeles that are being investigated for fraud and corruption. Rick Perry has been actively courting these companies in order to get them to Texas with the assurance of no further investigations. That's my kind of guy! That's my kind of state!


Posted by steve, a resident of Parkside
on Jul 14, 2011 at 9:28 am

blossom, provide a link to back up your accusations about Rick Perry, otherwise your claim is worth about as much as the byproduct of the cattle grazing on the ranches in Texas.
For those who think Calif. is the creative center of the world (ignoring all the other baggage that goes along with this state), then why aren't businesses flocking to Calif, instead of leaving?
Remember? The subject of this topic?


Posted by TP, a resident of Another Pleasanton neighborhood
on Jul 14, 2011 at 10:20 am

"then why aren't businesses flocking to Calif, instead of leaving?"

Creative start up businesses are flocking here. FaceBook, Twitter, Apple. The companies that are changing the world do flock here.


Posted by Pathetic, a resident of Another Pleasanton neighborhood
on Jul 14, 2011 at 10:54 am

Again, Twitter stayed in SF because of the sweatheart tax deal they got. And I'm not sure Apple is flocking here. They have been here for decades and if you look at their footprint, they have added more employees outside of CA than inside CA.

Are you folks trying to defend CA as a magnet for businesses? Really?

If so, how do you explain that CA unemployment is significantly higher than the national average? If CA were a magnet, should unemployment be lower than the national average?


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 14, 2011 at 2:09 pm

As we speak another 6 sidewalk taco stands have sprouted up on the streets of Houston and Waco, thereby adding 24 new jobettes to Texas' citizens.


Posted by Not just CA, a resident of Another Pleasanton neighborhood
on Jul 14, 2011 at 2:19 pm

"Again, Twitter stayed in SF because of the sweatheart tax deal they got."

And what about Facebook? Developed in Boston, yet they felt that to make it a success, they had to come to the Bay Area and that was not that long ago. They are about to go public.

There are many examples, but I am sure you can find the articles on your own.


Posted by TP, a resident of Another Pleasanton neighborhood
on Jul 14, 2011 at 2:31 pm

"If so, how do you explain that CA unemployment is significantly higher than the national average?"

Way too many people were employed in the unsustainable real estate construction boom in California. When the downturn came, it hit CA harder than other states because the boom was so large here.


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 14, 2011 at 2:39 pm



According to recent reports, in 2010 550,000 workers in Texas were working at jobs that paid at or below the minimum wage, or 9.5% of the state's hourly workforce, tying them with Mississippi for the largest percentage of minimum wage workers in the U.S. In California the minimum wage workforce tallied in at less than 2%.

Since what economists dubbed the end of the recession in 2009, California has seen its average wage increase by 9.3%, as opposed to a 0.6% increase in Texas. From 2007 to present, Texas saw a 150% increase in the minimum wage workforce, and 16% since 2010.

Wake up Californians. The proof in in the gravey. We need to be more like Texas and less like California. More outdoor taco stands, less onerous regulation of Texas-based companies like Enron. The evidence is overwelming.



Posted by steve, a resident of Parkside
on Jul 15, 2011 at 9:05 am

Blossom, ever notice the cost of living in Calif.? Of course, wages have to be higher here, just to compensate for the higher taxes.
So, site your source for this 'recent report'.
Again, you pull this post out of thin air, made up without any reference to a legitimate publication. At least if you quoted directly from your alleged source, there might be the chance of less spelling and grammatical errors. But then, if you're running a taco stand, English is probably your second language, especially if you won't assimilate.


Posted by Blossom, a resident of Stoneridge Orchards
on Jul 15, 2011 at 3:21 pm

What are you talking about, Steve? I thought we were in agreement. Actually, I love tacos and we could use more of them. And, no, English is not my second language; I speak good ol' American just like you. PS, let's keep Obama out of the White House, he represents the wrong party and wrong pigment for most of us.


If you were a member and logged in you could track comments from this story.

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

Understanding Early Decision in College Admissions
By Elizabeth LaScala | 1 comment | 1,978 views

New heights for NIMBYs
By Tim Hunt | 29 comments | 1,281 views

When those covering the news become the news
By Gina Channell-Allen | 1 comment | 922 views

Earthquake Insurance
By Roz Rogoff | 2 comments | 739 views