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60 Companies Have Left Calif. for Texas
Michael Reagan
FW: April 9, 2014
I think it’s time we regularized Rick Perry’s presence in California. Gov. Jerry Brown is probably not ready to grant the Republican Texas governor a Golden State citizenship, but he should at least demand he pay for a hunting license.
Reporter Stephen Frank writes that during the last few days of March Perry conducted yet another California safari to hunt local businesses. On the latest trip the travelin’ guv met with job creators in Los Angeles, Orange County, and Silicon Valley, representing technology, finance, and law firms.
Perry didn’t return with any more coonskins to tack on the wall of his Austin office from this trip, but it’s not for lack of trying. According to Jeff Miller, executive director of Americans for Economic Freedom, there are 60 firms from California that have pulled up stakes and moved their operation to the Lone Star State.
And Perry himself never tires of relating that it costs twice as much to rent a U-Haul to move from San Francisco to Austin then it does to go the reverse direction. The reason? U-Haul has to pay people to bring trucks back to California, because almost no one will do it voluntarily. It’s an exodus caused by the economic desert that California’s Democrat lawmakers and regulators have created.
And you don’t have to take my word for it. The numbers back me up. As I wrote earlier, in January, Texas added 30,000 new jobs, while in February California lost 31,000 jobs. And that’s not all. Frank points out individual taxes are so much higher in California that when people move to Texas “most get a 10 percent pay raise — due to the lack of an income tax. The companies get a 10 percent rise in profits, due to lack of state corporate tax. It is win-win in Texas and lose-lose in California.”
Miller says his goal is not to damage California’s economy. He wants California’s anti-business Democrats to wake up and smell the business climate. Miller says that by cutting regulations and taxes California can level the playing field with Texas.
In the meantime, Elk Grove — located outside of Sacramento — has decided to fight back. It’s “launching a counter-campaign to lure Texas companies.” That’s going to be a tough sell. The slogan: "Don’t wait for high taxes and stifling regulation to come to you, end the suspense and move to California" just doesn’t seem too appealing to me.
Michael Reagan is the son of President Ronald Reagan. He is president of The Reagan Legacy Foundation and chairman of the League of American Voters. Mike is an in-demand speaker with Premiere. Read more reports from Michael Reagan — Go Here Now.