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Tech exodus looks bad for SF — but the doomsayers are wrong about the reasons(Pyrrhic leftovers)
The San Francisco Standard ^ | Aug. 08, 2024 | Kevin V. Nguyen

Posted on 08/26/2024 8:37:59 AM PDT by Vendome

In the last month, two more major companies headquartered in the Bay Area announced that they would be leaving for presumably greener pastures out of state. One was the energy giant Chevron, and the other was X, the social media company that has been owned by Elon Musk since 2022.

The Bay Area Council, a business advocacy group, seized on the moment to repeat a critique it has made on numerous occasions: “It’s an embarrassment for California that we’ve lost so many global companies because of misguided policies that make it incredibly difficult to do business here,” president and CEO Jim Wunderman said in a statement shortly after the Chevron news broke.

Here’s what Wunderman said in 2020, when the software giant Oracle shifted its headquarters from Redwood City to Austin, Texas: “Anyone who doesn’t believe that this latest departure isn’t a threat to California’s economy is a business climate denier.”

“Either you’re doing this to change your company culture by moving somewhere different, or it’s more of a negotiation tactic meant to garner operational savings,” said Jon Moeller, executive managing director at Raise Commercial Real Estate, the firm that last year brokered a massive new lease for OpenAI in San Francisco.

“The role of the headquarters doesn’t mean the same thing it once did,” Yasukochi said. “Now, you might be able to maintain a fairly large workforce in one place while having your administrative base elsewhere for tax or regulatory advantages.”

(Excerpt) Read more at sfstandard.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; US: California
KEYWORDS: california; chevron; crumbs; dignity; fighting; for; sanfrancisco; twitter; x
the last paragraph of the excerpt is the most damning of California and varioous cities and counties policies.

There are plenty of people pretending, with their highbrow attitude, that a company moving it's headquarters isn't such a bad thing because there are plenty of workers left behinde.

Take Tesla, Schwab and Chevron for example. Sure there are workers in California but, a massive loss in taxes that accrue to a headquarters for revenue and intellectual property just vaporized.

California is left with a smaller tax base of corporate tax and a static or shrinking base of workers to tax.

Good luck California

1 posted on 08/26/2024 8:37:59 AM PDT by Vendome
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To: Vendome
the other was X, the social media company that has been owned by Elon Musk since 2022.

According to the SF Chronicle, SF politicians are glad to see X go. Left-wing ideology trumps all in SF, even tax revenue.
2 posted on 08/26/2024 8:44:49 AM PDT by AnotherUnixGeek
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To: Vendome

Not to mention, moving HQ is often just a first step into transitioning that workforce to the new location.

Harder to do with manufacturing, but in this day & age it’s much easier to transition office jobs to a new location over time.

Will be interesting to see how much presence (if any) these companies have in California in 10 years’ time.


3 posted on 08/26/2024 8:46:51 AM PDT by Zeppelin (Keep on FReepin' on...)
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To: Vendome
California is left with a smaller tax base of corporate tax and a static or shrinking base of workers to tax.

So what!?!?

California can make up the lost tax revenue, but raising taxes on those still living in California. Plenty more fools that love liberalism, even if it kills them.
4 posted on 08/26/2024 8:47:29 AM PDT by adorno (CCH)
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To: Vendome

In 1997 Congressman B-1 Bob Dornan had his election stolen. Newt did nothing about it. With the green light now lit the Rats began to expand the steal nationwide. Meanwhile in California you no longer have the option of voting your way out of tyranny. Packing up and leaving is the only option left.


5 posted on 08/26/2024 8:54:44 AM PDT by Nateman (Democrats did not strive for fraud friendly voting merely to continue honest elections.)
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To: Zeppelin

Then there’s the genius former Boeing CEO who a few years ago moved HQ from Washington State, a State that sucks, to Illinois, a State that sucks in long strokes.


6 posted on 08/26/2024 8:55:53 AM PDT by Bonemaker (invictus maneo )
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To: Zeppelin
Good points...In the meantime, there are some 300-400 sq ft condos around $400k. Paradise, of you don't mind living in a shoebox and staying away from downtown.../s (I guess...)
7 posted on 08/26/2024 9:03:06 AM PDT by PerConPat (The politician is an animal which can sit on a fence and yet keep both ears to the ground.- Mencken)
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To: Vendome

“”a business climate denier.””

I love that...sure fits!


8 posted on 08/26/2024 9:31:35 AM PDT by Thank You Rush
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To: Thank You Rush

Thou shalt not mock the Laffer Curve.
“Progressives” think they can raise taxes as high as they want and we will pay their rates. They thought wrong.


9 posted on 08/26/2024 10:34:51 AM PDT by griswold3 ( Robespierre and Pol Pot were “unburdened by what has been” Harris the "Year Zero" candidate)
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To: Vendome

There is a large and growing number of companies that do not allow remote working from Colorado or California. The added cost, restrictions, and reporting requirements are not only stupid, but cost prohibitive.

EC


10 posted on 08/26/2024 11:42:26 AM PDT by Ex-Con777
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To: Vendome

It is not just the corporate office leaving and taking their taxes with them, it is the trickle down theory in practice.

A large corporate office requires a lot of outside support.

Besides rent, there is all the technical equipment purchased and need maintenance and all the office supplies and all the small businesses around the main business where their employees buy things and the list goes on.

When a large corporation leaves they not only take their tax money but the tax money all those small businesses pay into the system.

And when enough leave, no one wants to replace them, and the area is taken over by the street people which in turn run even more out of the city.

History is full of once great cities being abandoned when their usefulness ends. Can San Francisco be saved, yes, but not as long as Democrats are in power.


11 posted on 08/26/2024 11:44:43 AM PDT by CIB-173RDABN (My opinions are the rusult of 80 years of life, you may not like them but who cares.)
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To: Vendome

CALIF HAS SPENT THE LAST 60 YEARS DRIVING BUSINESS & PEOPLE OUT.

WHAT DID THEY THINK WOULD HAPPEN???


12 posted on 08/26/2024 1:13:32 PM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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To: CIB-173RDABN

THE OLD ADAGE SAYS:

AN EMPLOYEE SPENDS most of their variable expenses within 10 miles of their job.

Meals/Gas/clothing/entertainment, etc.


13 posted on 08/26/2024 1:15:42 PM PDT by ridesthemiles (not giving up on TRUMP---EVER)
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