Posted on 12/17/2015 7:49:58 AM PST by SeekAndFind
On the macro level, California is finally coming out of the Great Recession, but on a micro level, this recovery is precariously balanced on the shoulders of one region. If something were to happen to the Silicon Valley-Bay Area region, the Golden State currently has no Plan B.
This isn't meant as a critique of the other regions of California, but rather a critique of how Sacramento has largely been blinded by the macro-level data to the detriment of exploring ways to spur growth in a more diversified manner.
Just like anywhere in the world, there are many potentially serious policy threats looming under the surface that could inhibit the Silicon Valley-Bay Area regions' competitiveness into the future. And there is strong evidence that these issues are already starting to have an impact. Between 2008 and 2014, 33% of the businesses that left California came from the Silicon Valley-Bay Area region; moreover, 8 of the top 15 business disinvestment municipalities are located within the Silicon Valley-Bay Area region. This is largely because the tech industry experienced the third most disinvestment during this time period.
When businesses determine where to start and where to expand, they take into consideration a series of factors, particularly any local taxes and regulations that may impact their bottom line.
Business taxes overtly hamper the bottom line: In California, non-pass through businesses could face three different types of business taxes. First, California's corporate income tax, at 8.84%, is the highest west of the Mississippi River in the continental United States. Second, the franchise tax - commonly defined as the tax paid "simply for the privilege of doing business in the state" -- is 1.5% of the corporation's net income with a minimum amount of $800.
(Excerpt) Read more at realclearmarkets.com ...
Some businesses are subject to a 6.65% alternative minimum tax which aims to reduce tax avoidance.
Silicon Valley has quietly been moving to Austin, Texas over the past several years.
While your at it, ask them for a "sane and moral leadership" app.
Not only does California have a maximum 40 hour work week, California law mandates a maximum work day of 8 hours. Thus, overtime is trigger when working in excess of 8 hours per day,
There is no such thing as Success in a 40 hour work week.
Funny how California laughed at Texas for ‘putting all their eggs in one basket’ in 1986 when the oil market collapsed and the state damn near went broke. Apparently CA learned nothing; Texas forcibly diversified their economy as a result and hasn’t been nearly as affected by the Obameconomy.
California is really awful. Stay away, except for vacations.
We don’t have enough water.
Dont worry, hollywood has enough ingenuity to create jobs and products to pull along...
Which is slowly being outsourced to China. These people have sown the wind, and now they will reap the Whirlwind. Their "Globalist", "Inclusion" mindset is going to wreck their cash cow.
Where their Liberal ideas are poisoning Texas.
Plan B is Bankruptcy, all the Democrat’s go back to where they came from when the feeding frenzy is over. When you see conservatives being elected in California, you know the fat lady is singing.
It’s kinda like a virus.
/s
“Plan B is Bankruptcy,”
As a life-long Californian, I pray every day that California will go under financially, because it’s the only way back from where the RATS have taken this one leader of the nation state.
IF California was a Corporation, it’s creditors would have demanded Bankruptcy years ago.
It is a total house of cards—partly held up by the myth that there is no where else so nice to live in the USA.
California residents have been brainwashed.
Tesla is building a new battery factory just east of Reno, in the Tahoe Reno Industrial Center.
They are supposed to be operating by June of 2016 with 6500 new employees.
I predict that Tesla will bring their Fremont assembly operations here to Nevada also, in the near future. They have no more room to expand in Fremont & they need to build many more cars to satisfy the Obama / Democrat edict for so many more electric cars.
IF they cannot expand there, they will have to find other facilities. Tesla already bought 3000 more acres at TRIC.
Other companies are following & piggy-backing on the Tesla move, along with others who have moved or are moving here. Estimates are that housing for 40,000 - 60,000 people will be needed in the next 5 years near Reno.
Another electric car company is trying to move to North Las Vegas. The Legislature has been brought back into special session to handle the tax breaks they will get. They are promising a car by 2017.
Not only does California have a maximum 40 hour work week, California law mandates a maximum work day of 8 hours. Thus, overtime is trigger when working in excess of 8 hours per day,
There is no such thing as Success in a 40 hour work week.”””
Let’s try to rephrase this comment:
The FEDERAL rules are that after 40 hours, overtime kicks in for an HOURLY worker. Calif is only following Fed rules with this, along with other states.
California also calls for overtime for hourly workers if they work more than 8 hours a day. A bigger benefit to the employee when occasionally asked to work overtime. NO EMPLOYEE can grant themselves overtime. It has to be approved by a Supervisor beforehand.
A person can work 10 hours on Monday—6 on Tues—8 on Wed—8 on Thurs—and 8 on Friday. Their paycheck will show 38 hours of regular pay & 2 hours of overtime pay IF they are working in California.
In other states which do not use the 8 hours a day application towards overtime, that paycheck would show 40 hours of straight time.
NO ONE is only allowed to work ONLY 40 hours. IF overtime is needed, if it is approved beforehand & if the employee agrees to work the overtime, then it can happen.
If an employer is busy enough, the overtime can be worth it. IF they only need such extra hours seasonally, it isn’t
worth it to hire more people, since there are so many other employer burdens for every employee. -—Not to mention finding qualified persons who will work.
Salaried workers have different rules.
I was a payroll supervisor in California for a large payroll. I was a bookkeeper there for small businesses from 1980 to present. Unless there have been any changes I am not aware of, this has been California practice for a very long time’
Since I was self-employed, I could work as many hours a week as I needed to complete all the client work on my desk. I often averaged 70 +++++ hours a week. More at year end to do all the W-2’s, etc. NO overtime. No paid vacations. No paid holidays. No paid sick leave. No paid health benefits. However-—I could & DID pick & choose my clients.
Today, I still do bookkeeping for 2 clients. One I have worked for for over 45 years. The other, nearly 40. I just turned 76. Loyalty to my services is very special to me.
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