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CEO says doing business in state ‘sucks’ as company heads to Texas amid California exodus
Fox News ^ | 08/17/2026 | Amanda Macias

Posted on 08/17/2026 9:57:47 AM PDT by DFG

"Doing business in the state of California sucks," Hil Davis, a California businessman, bluntly told Fox News Digital.

That frustration ultimately drove Davis, CEO of Digital Brands Group, more than 1,300 miles to Texas.

The apparel and e-commerce company relocated its headquarters to Round Rock, just north of Austin, leasing roughly 70,000 square feet of warehouse and office space as it expands its collegiate sports apparel business.

Davis said the sprawling Texas facility costs roughly the same as the company’s former space in Vernon, California, about five miles south of Los Angeles.

And rent was only part of the equation.

Davis pointed to California’s high cost of living, long employee commutes and the rising cost of doing business, including defending against lawsuits.

"You start to add all those things up," he said. "It doesn’t work. It doesn’t make sense. It’s too hard."

The relocation comes as California wrestles with a much bigger question about whether the state’s costs, taxes and regulations are driving away the businesses and wealthy residents it relies on.

That debate has intensified around a proposed one-time tax of up to 5% on Californians worth more than $1 billion.

Supporters say the billionaire tax could raise billions for health care and other public programs by asking the state’s wealthiest residents to pay more. Opponents warn it could instead send major taxpayers packing — and take future tax revenue with them.

California is already seeing taxpayers and their income move elsewhere. Los Angeles County led the nation in taxpayer losses in the latest IRS data, with a net 17,496 tax filers leaving for other states and taking nearly $1.9 billion in income with them.

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


TOPICS: US: California; US: Texas
KEYWORDS: california; digitalbrands; hildavis; roundrock

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1 posted on 08/17/2026 9:57:47 AM PDT by DFG
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To: DFG

Fire the liberals. Dont bring them with you. Texas has enough of them already.


2 posted on 08/17/2026 10:00:12 AM PDT by Wilderness Conservative (Death to the DEATH TO AMERICA, Democrats.)
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To: Wilderness Conservative

I’ll second that. Do NOT bring more liberal employees here.


3 posted on 08/17/2026 10:01:11 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Wilderness Conservative

“If you fled your failed state for economic opportunities in Texas, do not continue to vote your failed state ways.”


4 posted on 08/17/2026 10:04:29 AM PDT by Deaf Smith (When a Texan takes his chances, chances will be taken that's for sure.)
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To: DFG

Admittedly Off Topic:
Did you read that? Now, even business CEOs will make public comments, while using the term “It Sucks!”. Tacky and vulgar.
I’m a Crabby Ol’ Caveman still getting used to such coarse language in public. Oh well. Back to other News!


5 posted on 08/17/2026 10:05:31 AM PDT by lee martell
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To: DFG

It was this kind of Democrat crash in New York that brought so many liberals to California back in the 60s and 70s.

Thirty years later, they had ruined the State. What could have been Switzerland on steroids is now a mix of Mad Max, Blade Runner, and The Matrix.


6 posted on 08/17/2026 10:10:23 AM PDT by Carry_Okie (The tree of liberty needs a rope.)
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To: DFG

“ Supporters say the billionaire tax could raise billions for health care and other public programs…”

The stupid hurts so bad. How is a one time tax going to fund a recurring program?

Will the tax become recurring or will the programs be one time?

EC


7 posted on 08/17/2026 10:11:30 AM PDT by Ex-Con777 ("Journalism is about covering important stories-with a pillow, until they stop moving." ~ David Burg)
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To: Deaf Smith

Not all, but a good portion of the parasites he dragged along with him will vote like Austin.


8 posted on 08/17/2026 10:11:31 AM PDT by fwdude (Why is there a "far/radical right," but damned if they'll admit that there is a far/radical left)
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To: DFG

Just wait until he discovers the people unfriendly property taxes. I paid over $14,000 last year on my main residence.


9 posted on 08/17/2026 10:17:21 AM PDT by thegagline (If you hate Christianity, Vote Talarico. Sic semper tyrannis! Zeldin for President )
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To: thegagline

yes, we pay high property taxes, but zero income tax. When you look at the total our tax burden is less than those who tax both (but have lower property taxes)


10 posted on 08/17/2026 10:19:14 AM PDT by TexasFreeper2009
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To: DFG

At a $300,000 salary and a $1 million home value, your total state and local tax burden is typically lower in Texas than in California. Texas saves you a substantial amount by charging 0% state income tax, whereas California levies a progressive income tax reaching up to 9.3% to 10.3%+ for this bracket, costing roughly $18,000 to $22,000+ in income tax alone. While Texas claws back more via property taxes (~1.6% to 1.8% effective rate or $16,000–$18,000 on a $1M home) compared to California’s Prop 13 rate (~0.71% or $7,100 on a $1M home), the net balance at a $300k income level still heavily favors Texas’s lack of income tax.Income Tax BreakdownCalifornia: Applies progressive marginal tax brackets; a $300k single filer typically faces an effective state income tax rate near 7%–8%, resulting in an approximate liability of $20,000.Texas: No personal state income tax ($0).Property Tax BreakdownCalifornia: Protected by Proposition 13, a $1,000,000 home base assessment yields an average effective rate around 0.71% to 0.74%, totaling about $7,100 to $7,400 annually.Texas: Features higher effective property tax rates averaging 1.6% to 1.8% (and higher depending on exact municipal/school districts), totaling about $16,000 to $18,000 annually on a $1,000,000 home.Combined Estimated Tax BillEstimated California Total: ~$27,100 ($20,000 income tax + $7,100 property tax)Estimated Texas Total: ~$16,000 to $18,000 ($0 income tax + $16,000–$18,000 property tax)Net Difference: You save roughly $9,000 to $11,000 per year in total direct tax burden by living in Texas at this specific income and home value tier.


11 posted on 08/17/2026 10:22:18 AM PDT by TexasFreeper2009
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To: TexasFreeper2009

Nevada, Florida, Tennessee have no income tax and have relatively low property taxes as compared to Texas. Hopefully, this term the Texas Republicans get their act together and address Abbott’s call to slash property taxes.


12 posted on 08/17/2026 10:27:10 AM PDT by thegagline (If you hate Christianity, Vote Talarico. Sic semper tyrannis! Zeldin for President )
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To: Wilderness Conservative

For sure clean break. Leave the Ca staff where they are. Most are hard wired woke’s


13 posted on 08/17/2026 10:40:10 AM PDT by gibsonguy
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To: Deaf Smith

In other words, parasites. We have them here in AZ from Cali, WA, and OR.


14 posted on 08/17/2026 10:41:58 AM PDT by Tommy Revolts
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To: TexasFreeper2009

“””yes, we pay high property taxes, but zero income tax. When you look at the total our tax burden is less than those who tax both (but have lower property taxes)”””

Come to Minnesota. High property taxes. High income taxes. High sales tax. Tax on Social Security checks.

But open a Learing Center and make millions. What a place.


15 posted on 08/17/2026 10:52:43 AM PDT by shelterguy
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To: DFG

“Supporters say the billionaire tax could raise billions for health care and other public programs by asking the state’s wealthiest residents to pay more.”

LMFWAO!

“Asking.”

Hand in the air if you’ve ever regarded your tax filings as the government “asking.”

Anyone? Anyone...?

Bueller...? Ferris Bueller?

No? No hands...? Nobody?

Uh-huh.


16 posted on 08/17/2026 10:54:58 AM PDT by HKMk23 (https://youtu.be/LTseTg48568)
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To: DFG

Newscum will soon support having security walls around CA.


17 posted on 08/17/2026 10:57:37 AM PDT by Mark (DONATE ONCE every 3 months-is that a big deal?)
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To: DFG

I hate to be the one to have to tell you this, but Austin, by itself, isn’t much different from CA.


18 posted on 08/17/2026 11:02:15 AM PDT by atomic_dog
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To: DFG

California is where businesses go to die.


19 posted on 08/17/2026 11:16:39 AM PDT by Vaduz (NEVER TRUST A DEMOCRAT)
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To: atomic_dog

Yes it is well known Austin is the a-hole of Texas and getting worse.


20 posted on 08/17/2026 11:18:22 AM PDT by gibsonguy
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