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 ...
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
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.
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.
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.
“”a business climate denier.””
I love that...sure fits!
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.
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
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.
CALIF HAS SPENT THE LAST 60 YEARS DRIVING BUSINESS & PEOPLE OUT.
WHAT DID THEY THINK WOULD HAPPEN???
THE OLD ADAGE SAYS:
AN EMPLOYEE SPENDS most of their variable expenses within 10 miles of their job.
Meals/Gas/clothing/entertainment, etc.
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