Don't tell that to the 100's of high tech and bio-tech firms that left the US for Scandinavia! Yeah, you heard me, not Mexico, not China, not India, but Scandinavia. Oh yeah, and they have higher wages there as well. Next...
Thats not true, i am living proof that taxes have everything to do with moving out of country. I moved from Canada to the U.S. soley because i save a ton on taxes. I am currently remaining in the U.S. only as long as it is beneficial for me to be here. If my taxes were close to being the same i would probably move back to Canada, especially given the fact that we are currently trying to devalue the currency in a race to the bottom, i can assure you that the year i end up evaluating my tax bills and they end up the same, i will be going back to where i grew up. It is a mutually beneficial relationship between me and the U.S. they can either hold on to me as a taxpayer who paid more taxes the last couple years then most people make, or they can continue to rape me as a taxpayer, and raise my taxes, and i will be out of here with no hesitation.
But...we don't want to leave California. Couldn't the congress just appropriate money from the general fund to help out California with its financial challenges? I mean, a few billlion right now could make all the difference. If those other states are so prosperous then they surely wouldn't mind helping out another state that needs a hand. California is the model for progressive policies and social justice. You don't want that to go bankrupt do you? California is going to mandate the use of alternative fuels and that will obviously create millions of jobs in the future Cal economy. But it will take time. Some help is needed in the interim period before Cali adds on all of those new jobs. Migrate all you want but that doesn't obviate your responsibility to support the liberal governance and experimental finances of the Golden State.
How does that relate to hiring employees? My partner and I have a small shop, less than 10 employees. We do welding and millwright type work. Should we hire additional people simply because of a tax break? I wish it were so simple. You can reduce my tax rate to zero, if there's no work, I ain't hiring.
I ain't seeing the 100's. Since the early 1990s, Europe has steadily expanded its share of the world's 100 biggest multinationals compiled annually by the U.N. Conference on Trade and Development, from 57 in 1991 to 61 last year, while the U.S. number has dropped from 26 to 19.
I don't have time to search the web and post all the articles for you but there are many out there if you do a search. Europe has much lower corporate taxes then here in the states as well as a much more business friendly climate for companies. And many companies that are still based here have more and more of their operations in Europe. Most of their revenue capture is there, not here. Just look at GOOG case in point where most of their revenue is actually generated in Ireland, not the US. Look man, you are arguing with yourself. The fact of the matter is this country is one of the least friendly environments for business and that is why business is leaving.
Government employees get paid through my taxes, plus i either spend money in the states, or in Canada, thus it spurs economic growth. Im a trader, so i may never hire an employee, but i can trade the U.S. markets from inside the U.S. and spend my money here, and get taxed here to pay for government wages or i can leave in which case these companies do not get the added revenue from my spending, and the government does not get the added revenue they generate from taxes on me to pay government wages. So yes it is directly related to jobs. When you keep lowering the taxbase through increased taxes, people inevitably feel the pain through job losses. this is only my example, can you imagine the damage which is done to actual companies who move over seas and have hundreds of employees?
I've been saying the same for my business, but "you can explain this to (some) conservatives until you are blue in the face, and you wont get anywhere." I don't need more cash, I need sales. When I've got those, I'll hire. And I could give a rat's ass about the possibilities of future taxes, I'll cross that bridge when I get there. It's not high taxes stifling our economy [vis a vis recovery], it's broke customers.