Economy

CA lawmakers seek to make taxes even higher for businesses

Written by Miguel Palacios

It is a fact that the wealthy one-percenters in California are paying half of the state’s income taxes. Not only does the state rely on these wealthy few for revenue, but also for the jobs they create. Nevertheless, policymakers within the state seem to think there is no limit to what they can demand from these benefactors.

The topic of California’s unfriendly policy towards business has been hotly debated for quite some time. Once again, the issue has come to a head. With the top 1% funding the state’s progressive tax structure, California seeks to increase the amount they pay and/or levy new taxes against them.

Many corporations have had enough and decided to leave the state. In December, Elon Musk announced that he would be moving to Texas and that he would be moving Tesla HQ to Texas as well. What really crossed the line for him was California’s quarantine restrictions, which required him to shut down production. Instead of our policymakers seeking to compromise with him, the infamous Assemblywoman Lorena Gonzalez, tweeted the response, “F*ck Elon Musk,”.

This type of thinking and attitude towards the individuals and the corporations that sustain California’s economy is unacceptable. It is clear why they are choosing to leave our state. Elon Musk and Tesla are not alone. Other notable corporations that have decided to move out of California are: Bare Essentials, Charles Schwab, Dole, HP, Jamba Juice, Nestle, Nissan North America, Pabst Brewing Company, and Toyota North America. These are just the most notable on the list provided by The Center for Jobs & the Economy.

The truth is that many corporations have either decided to leave or have decided to expand their production plants to other states to take advantage of their better/friendlier tax policies towards businesses. Apple is one example of such a business. They have begun the construction of a new campus in Austin Texas, where they will be producing Mac Pros. This new plant is going to provide thousands of new jobs to Texas, jobs that could have been kept in California.

Sooner or later, California will have to learn that there are repercussions for biting the hand that feeds you.

 

Photo via CGTN