Originally posted by: marincounty
Originally posted by: Common Courtesy
Originally posted by: miketheidiot
Originally posted by: spidey07
One sure fire way to make business and people flee your state is to raise taxes. It's a downward spiral. Higher taxes = less tax revenue, raise them again = even less revenue.
this is why places like the dakotas have people rushing to live there, because the taxes are so low. :roll:
This is why there are billboards along the major NV highways asking CA businesses to not leave CA or come back.
A 10% tax rate on income vs 0%, half the housing costs plus lower business taxes can be a powerful incentive
Of course you didn't mention all of the ads Nevada runs pleading with businesses in California to locate in low-tax Nevada.
<a target=_blank class=ftalternatingbarlinklarge href="http://www.latimes.com/news/opinion/commentary/la-oe-rarick27-
<b">2009aug27,0,3359732.story">Text</a>
A recent ad campaign pitting Nevada against California to lure businesses is a waste of money and ignores the fact that firms seldom move because of tax-haven promises
Nevada started it. The Nevada Development Authority launched a campaign that will spend a million dollars over a year to air a series of ads enticing California businesses to move to Las Vegas. The spots boast about Nevada's low taxes and workers' comp fees and feature a chimpanzee and a really bad actress portraying a television newswoman who turns into a pig wearing bright red lipstick.
California Assemblyman Jose Solorio (D-Santa Ana), putting his campaign funds to creative use, is paying for counterattack ads that list corporate behemoths based in California and make fun of lonely, cow-filled Nevada.
California's political and financial dysfunction cannot be denied, but, as it turns out, it also doesn't work so well to base your state economy on the hopeless hopes of starry-eyed gamblers. This year, Nevada, like pathetic old California, has been battling a multibillion-dollar budget gap. In April, an official of the Nevada Mining Assn. -- a business group, mind you -- told the Associated Press that the shortfall was "a wake-up call to say that we're broke" and a signal that "we're going to have to raise taxes."
But the real significance of the spat is that it furthers a dangerous and phony economic myth -- that hordes of nomadic businesses are roaming the country, plopping down for a year or two in a tax haven and then packing up and moving on the minute a neighboring state bats an alluring low-tax eye.
The fact is the come-hither look is useless: Relatively few businesses, once they're formed, pick up and move across state lines. Over the last several years, the nonpartisan Public Policy Institute of California has done exhaustive research trying to measure precisely how many jobs California has lost because of such moves, while also measuring the offsetting number we have gained from businesses moving into the state. The conclusion? The impact is tiny.
The researchers found that the average annual job loss was only .06% of California's total employment. Just to be clear, that's not 6%; it's six one-hundredths of 1%.
So if Nevadans want to waste a million dollars on these ads, let them. In fact, from California's competitive standpoint, better that Nevada wastes $10 million or $100 million. All of that is money that could otherwise be spent on the useful public services that might help it attract more total residents than Orange County, an achievement that has thus far eluded it.
All is not well in California, and no one's in favor of needless taxation or regulation. But don't let hard times convince you that there are swarms of corporations rolling back and forth across state lines like armies on the march in search of a warm pair of arms to fall into. When it comes to showing a little skin to woo businesses, the danger of pandering far outweighs that of complacency.