Quote: (11-11-2012 12:26 PM)Katatonic Wrote:
Stories like this are becoming common: http://abclocal.go.com/kabc/story?sectio...id=8026874
Yeah, I see this kind of bullshit all the time, and so far every case I've seen was just an empty threat trying to get some preferences from the local government.
Just look on that article:
Carl's Jr. wants to move headquarters out of Calif. Tuesday, March 22, 2011
The article was printed 18 months ago, long enough to move out if they wanted. But
apparently they didn't move anywhere.
I hope you see the difference between "businesses MOVING out of state" and "businesses THREATENING to move out of state". In most cases those threats are just empty, and nobody really believes them.
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You look in the film industry too, where tax incentives in Louisiana, Georgia, and Mississippi are causing productions to flee California.
How's the talent there? I wouldn't expect a lot of people to move from CA to any of those states. Sure you can fly the actors there, but you need a lot of skilled people as well, and no tax incentive would make me to move to somewhere like Louisiana.
The results? Probably the same as with IT industry. I know very well one IT company which decided to establish in OH instead of CA because of those tax preferences. Sure, they pay no taxes but they have huge problems with the staff. Not only there are much, much less skilled employees (and they're all employed, so you'd have to pay more), but they have trouble bringing the people in even paying the Silicon Valley $100/hr contract rates as nobody wants to go there. They're moving to San Mateo next year.