Posted on 08/03/2004 7:49:31 PM PDT by NormsRevenge
LOS ANGELES (AP) - In the latest shot in an economic border war, Gov. Arnold Schwarzenegger heads to Nevada Wednesday to entice companies that fled California's high taxes, congested highways and hefty utility costs to come home.
The Republican governor has promised to travel the world to lure employers to California, and aides said his trip to the Las Vegas Strip was part of an ongoing push to market the state as an economic comeback story. He will publicize a recent budget agreement that held the line on taxes, as well as reforms that cut workers compensation costs for businesses, although not to the degree he predicted.
"We are going to highlight that California is open for business, and that those companies that left the state because of the unfriendly business climate - that's changed," the governor's spokeswoman, Margita Thompson, said Tuesday.
California's image took a beating in recent years, with the energy crisis and an unsteady economy contributing to the political turmoil of last year's recall election. States from Texas to Oregon made pitches to steal jobs from the state, with promises of lower taxes and a welcoming business climate.
In fiscal 2003 alone, two dozen California firms crossed the border to Nevada, records show. To attract businesses, state economic development officials have run ads mocking rival California's utility and insurance costs.
Schwarzenegger, facing continuing budget troubles, desperately needs those jobs back or others to replace them. In Las Vegas, he will unveil a billboard, featuring his likeness, and the slogan "California is Open for Business."
Nevada officials said they were unconcerned with Schwarzenegger's high-profile salesmanship.
"At the end of the day, businesses are going to remember why they moved to Nevada," said Greg Bortolin, a spokesman for Nevada Gov. Kenny Guinn. "As much as we like Gov. Schwarzenegger, Nevada is still a better place to do business."
Since his election in last year's recall campaign, Schwarzenegger's instantly recognizable image has gradually become the centerpiece of the state's efforts to market itself.
Earlier this year, Schwarzenegger contributed his star power to a $4 million television campaign urging consumers to purchase "California Grown" products. That followed a $1.2 million TV ad blitz sponsored by the state's travel and tourism commission in which the governor and his wife, Maria Shriver, joined other famous Californians beckoning visitors to the state.
With California strapped for cash, it will be a challenge for the state to match the kinds of tax breaks that might be available for companies elsewhere. A major insurer has projected that workers' compensation rates would drop by about 7 percent next year, far below initial projections of up to 30 percent.
And while Schwarzenegger crusades to make California more business friendly, Democratic lawmakers have sought passage of an array of bills that would impose fees and higher costs on businesses, including raising the minimum wage to one of the nation's highest levels.
Aki Korhonen, who moved his software company PC-Doctor Inc., from the San Francisco Bay area to Reno, laughed when asked if he would consider returning to California. He said he relocated for a host of reasons, from lower taxes to an improved quality of living.
"It takes me five minutes to get to work. I live in a beautiful place with a great view and it was cheaper than what was available in California," he said. "Essentially, everything is cheaper."
Well it seems to me that once the decision is made to leave, you leave. Concentration should be placed on new business or businesses thinking about leaving. But, I could be wrong.
a little mod on this one in on order , imo.
Schwarzenegger, facing continuing budget troubles, desperately needs those jobs back or others to replace them. In Las Vegas, he will unveil a billboard, featuring his likeness, and the slogan "California is Still Open for Business Special Interests."
I think there are probably gains to be had in both areas. Growing new business is important, but it's long-term and something government isn't very good at doing. Getting a super-governor to entice stable businesses back across the border is probably more efficient for California.
The cost of living is still rising in California.
It'll take more than star power to bring business back.
California is a joke. I always thought the recall was a bad idea. Californians needed to go through liberal boot camp under Davis and recognize the pitfalls of living in a socialist paradise.
These business people aren't gonna be conned by "special effects," or carefully scripted lines!!! Energy, Taxes and Extreme GovernMental EnvironMentalism and even the "nationalization" of the entire Sierra-Nevada & Cascade mountain ranges by the Senor Schwarzenrenegger, our vituperous ballot box baiting Governor is not going to entice them one bit!!!
Well it's too late baby, it's too late, though we really did try to make it...
IMO Schwarzenegger should abolish all corporate and personal income taxes and go with a uniform sales tax of about 15%. This would tax all the drug dealers and illegal aliens, and businesses would return in droves since the costs of doing business would be next to nothing.
How exactly do you tax drug dealers, the illegal type?
Same goes for illegal aliens if they work under the table?
Not being picky, but your idea is a good one, I don't see how it would work
a UNIFORM SALES TAX. They have to buy some good/services that aren't under the table.
Wow, thanks for the shining beam of wisdom. I actually understand what UNIFORM SALES TAX means.
What I don't understand and probably neither do you is how do you get drug dealers to pay a UNIFORM SALES TAX when they are selling illegal products?
Turn themselves in or just gave their customers a sales receipt?
Arnie, Please take them back!!!!!!!!!!!
County and city governments have been short-changed in such a way that local fees are going to go through the roof. It's time to invest in parking meter companies.
The cost of living is still rising in California.
It'll take more than star power to bring business back.
Workmen's Compensation Insurance is the most visible reason why business is leaving Calif. Went up 400%, then they carved back 11%. Doesn't compute.
One plastics company in So Cal had been in business for over 50 years. They fould they could move ALL their employees-350 or so-, and all their machinery, build a new building that was larger and more efficient, and recover all their MOVING costs for employees and machines in under 9 months on the Workmen's Comp Insurance savings alone.
The extra kicker? Electricity costs for new plant being closer to Hoover Dam generation facilities are 62% of costs in So Cal. Last I heard, 338 employees had decided to move. Employees homes in Nevada are cheaper, also. No state income tax for personal or corporation, either. They owned their old land and buildings, and sale of them paid for new ones, I believe. Seems like a complete no-brainer to me, even with my one room school grade school education.
abolish all corporate and personal income taxes and go with a uniform sales tax of about 15%.
Still doesn't solve the cost of workmen's comp insurance...Sorry.....No Thanks.
They steal as much as they outright pay for. Sales tax doesn't hit them near as hard as the regular public.
What a bunch of hogwash!!!
If Ahnold had the sense God gave a jackass, he would have cut the friggin' budget by 13% right off the top and the budget would be balanced next year!!
He would have used the veto pen and lined through every expenditure less 13% and if the legislature didn't go along then tell them he would leave it up to the voters in November!!! But that would have taken courage that Ahnold doesn't have...
In fact if Ahnold had any balls at all, he would come out tomorrow with a referendum to eliminate the CA income tax altogether!!!
But it ain't gonna happen and everyone making over 200K is looking to relocate.
And that's the bottom line!
That's a good idea --- except what about those people who live near the border of another state or with Mexico? How will they pay any taxes if they decide to shop over the border or out of state?
I enjoyed a trip to San Diego Technical Books, PC Club and American Shooting Center. 90 minutes of good experiences in the 51 hours I spent in San Diego. San Diego to Pocatello round trip was 34 hours on I-15.
It was so much fun, I might do it again...in 5 or 10 years.
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