Texas vs. California

There's a lot of that going around.

 

http://bit.ly/x1zWsQ

 

Just curious, not baiting, and you know I really think we have a lot in common. Are you seeing a lot of liberal States or changes from conservative to liberal? I'm not asking if it's right or wrong, just the actual change. I know we have Red and Blue states, but curious as to your thoughts on the change from Conservative to Liberal.


c

 

http://globaleconomicanalysis.blogs...lysis+(Mish's+Global+Economic+Trend+Analysis)

Businesses Exit California in Droves

Madeline and I are not the only ones who noticed the plunge in California. Chriss W. Street on Beitbart discusses the California Exodus behind the drop. Street has the reason: Businesses fed up with high taxes have fled the state.

California politicians seem delusional in their continued delusion that high taxes have not savaged the State’s economy. Each month’s disappointment is written off as due to some one-time event.

The more likely reason tax collections continue falling is that businesses and successful people are leaving California for the better tax rates available in more pro-business states.

Derisively referred to as “Taxifornia” by the independent Pacific Research Institute, California wins the booby prize for the highest personal income taxes in the nation and higher sales tax rates than all but four other states. Though Californians benefit from Proposition 13 restrictions on how much their property tax can increase in one year, the state still has the worst state tax burden in the U.S.

Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs. This probably explains why California lost 120,000 jobs last year and Texas gained 130,000 jobs.

California Governor Jerry Brown’s answer to the State’s failing economy and crumbling tax revenue is to place a $6 billion tax increase initiative on the ballot to support K-12 public schools. He promises to only “temporarily” raise personal income rates by 25% on any of the rich folk who haven’t already left.

Taxed to Death

If Brown continues to suck up to the public unions responsible for the mess California is in, expect still more businesses to leave, expect the unemployment rate to rise, and expect a continued plunge in revenue.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

 

California is superior in many ways to TX

TX has a very low educated profile, and alot of illegal immigrants. Also, most of the industry located in TX is either energy related which is based on finite energy source or cheap factory jobs.

Whereas California is so expensive only the rich American or the rich Asians can live now. It is good that cheap factory businesses left California and only the high sophisticated technology work stays.

If you look at the employment numbers, California is still adding high tech jobs and even there is a boom in high tech and networking and computer related jobs. All these jobs pay at the very highest scale not like Texas kind.

California is ahead of Texas and the whole world when it comes to technology and the state will enjoy the tax revenues, highly educated workforce. Texas economy is based on traditional industries and sooner or later California on a per income basis will far superpass Texas in the near future.

Let the poor people leave California and fill Texas, I am happy as a Californian. I wish all illegal Mexicans leave California.

 

You must be smoking some of that CA weed. Austin is growing far more tech jobs then CA. They are all leaving Irvine and Silicon Valley for Austin. CA has two worlds. You either live with the ultra rich on the coast or live with the other 95% which are immigrants and deadbeats. TX is not just about energy. They are the medical capital of the US, they are huge in agriculture and aerospace as well. Austin also has one of the largest music communities in the US and more movies are made now in Austin then CA. They also have one of the largest reservoirs of clean water in the US under their soil.

Sorry bud, CA is done. All I see in the future is more illegals, more deadbeats, higher taxes and a crumbling state economy. Enjoy!

 

With all the 'chicago politics' and the Governor in prison, must be about a draw between IL and CA? A lot of Chicago bashing these days it seems. At least the weather is nice in CA. I don't live in either place, of course.

And, note that TX is horrible for traders. Too many regulations and other taxes.


c

 

http://online.wsj.com/article/SB100...7277242682364690.html?mod=WSJ_Opinion_LEADTop


"From the mid-1980s to 2005, California's population grew by 10 million, while Medicaid recipients soared by seven million; tax filers paying income taxes rose by just 150,000..."

 

I know a lot of traders in TX. I have no idea what regulations you are talking about. As a trader I would sure love to not have to pay state income taxes. Other then that, Dallas has one of the largest retail trading populations in the country. It's the number one stop on all the vendor stops. Austin is becoming a large hedge fund haven with some HFT firms moving in. Many hedge funds in Dallas as well. And of course Houston is the oil and nat gas trading center of the world.

So again, unless you want to be more specific, not sure what you are referring to.

 

Weren't those new jobs Texas added mostly low paying minimum wage jobs or government?

I'd rather live in CA any day. We don't need some governor Ricky that forces medically unnecessary ultra-sounds on women here.

The fact that Gov. Ricky thoroughly embarrassed himself running for President and the state of Texas is enough not to go there.

We also don't need another Bush Jr. to run the country down the tubes either.

The economy will eventually recover and people will still want to live in CA just like people want to live in FLA. It's unavoidable to want live in better weather.