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California Attorney General Candidate Nathan Hockman discusses his anti-crime platform ‘The Claman Countdown’.
A recent report from the Hoover Institute highlighted the exodus of companies pulling their headquarters from California to escape the Golden State’s high tax and regulatory environment.
According to a report released on October 25, the California Department of Commerce
FILE: In an aerial view, shipping cranes stand at the Port of Oakland in front of the San Francisco skyline in Oakland, California on October 24, 2022. (Justin Sullivan/Getty Images/Getty Images)
In the past three years, California has lost 11 Fortune 1,000 companies, whose exits are expected to have a negative impact on the state’s economy.
Noting that state and local policies have raised unsustainable business costs, the rising migration is “plain and simple” to the economics, the authors say. Therefore, businesses are choosing to relocate their headquarters to regions with favorable climates such as low taxes and low cost of living.
According to the report, migration is occurring in many industries, including manufacturing, aerospace, financial services, real estate, chemicals, healthcare and high-tech businesses.
Wealthy Californians could face billions in new taxes after the midterm elections
Big tech legacy companies like Hewlett-Packard Enterprises, Oracle and Tesla command the most media attention when they leave California. But the state is losing small businesses, which has negative implications for California’s economic future, the report said.
Barron’s Managing Editor Darren Fonda discusses ongoing policies on companies moving out of California and the restaurant workforce shortage on the ‘Barron’s Roundtable.’
Texas continues to be a major destination for businesses originating from California. But businesses are moving to other states with lower business costs and better business climates than California, the report found.
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“Policies are driving up business and housing costs, and companies and people are leaving the state for more affordable, regulated and lower-taxed locations,” the report said. “This process will continue until the state’s political leaders make very different policy choices that create a different future for California — one that honors its remarkable past.”
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