Taxes, fees, too much regulation, and a “hostile business environment” are reasons cited by people leaving California and New York.
Much of the media covering this story has a liberal bias so ground truth is difficult to find.
But here is a snip from the Orange County (CA) Register last April:
Attendees heard from more than a dozen businesspeople who complained of high workman’s compensation insurance, “predatory” regulators, an unfriendly business climate, a “never ending paper trail of business forms,” exorbitant utility expenses, fees, taxes, quality of life and overpriced overhead.
Randy York said he moved his polyurethane manufacturing business from Huntington Beach to Reno, Nev. in 1987 because he was tired of being “hammered” with regulatory fees from the fire department, the health department, the state Environmental Protection Agency, the California Division of Occupational Safety and Health and the South Coast Air Quality Management District.
He said it got to the point where he was paying $2,000 or $3,000 a quarter on fees – for company of 20 employees.
“They were killing us with fees,” he said. “Fees, fees, fees.”
Pollster Pat Goodall says 3,000 people leave California every week: mostly because of taxes and fees.
In New York, the situation is similar.
Some economists say high income New Yorkers are leaving the state faster than those fleeing California. At least in California, one has the Pacific Ocean…..
Here’s what Donald Trump told Neil Cavuto in April:
“The fact is that the state of New York did something very, very foolish, and they passed a tax, an income tax, and increased it very substantially from what it was.And I believe that’s going to be a total disaster for the state. …You’re talking about millions and millions of dollars for some people that really have other options, Neil. They can move to other states. You take a state like Florida, run by a governor, Charlie Crist, who is a terrific governor, and who is very, very cherishing of his no income tax.So, you know, I make a lot of money outside of New York State, as an example. And I’m saying to myself, wait a minute. For the privilege of living in New York, I am supposed to pay tens of millions of dollars in extra taxes? It doesn’t make sense.”
At the national level, Obama seems unknowing or uncaring. His proposal to cut “loopholes” for businesses operating on foreign shores and in “tax havens” ignores the natural fact of economics (and life) that businesses will migrate toward the places that offer the best bottom line….People too…..
Donald Trump holds a driver. He’s building his golf course in Scotland where it isn’t as expensive….as New York….Photo: AP