Nevada and Arizona are trying
to capitalize on California’s latest ballot measures by
attempting to lure tax-burdened companies out of the golden
state.
According to the
Las Vegas Review Journal, ;the Las Vegas Regional
Economic Development Council (LVREDC) plans to launch a campaign to
attract businesses across state lines. ; Tom Skancke, CEO of
the LVREDC, told the paper that he “welcomed all California
businesses” and that his development staff would be reaching out to
their contacts in California in the new year.
Arizona business leaders have made a more ambitious play for
businesses fleeing tax hikes. The Greater Phoenix Economic Council
(GPEC) launched a program to fly 100 Californian chief executives
to Arizona for a tour of what the Grand Canyon state has to offer.
Speaking to the
L.A. Times, ;Barry Broome, President of the GPEC
project, questioned the continuing viability of businesses in
California
"If I were running a company in California, I would have a deep
internal debate about the direction of the state. You just have an
environment in California that isn’t good news for people who build
and run companies."
The program has extended its initial ambitions looking to target
100 high-tech companies with 200 or more employees; double it's
initial plans of 50. So far 11 CEOs have committed to meeting with
the GPEC. Gil Duran, a spokesman for Governor Jerry Brown
(D-Calif.), dismissed the program in an email saying; "Anybody who
tries to convince you to leave the best and richest state for some
parched desert outpost should be regarded with extreme suspicion.
Scam alert!"
The number of businesses leaving California this year is
said to be on track with last year's figure of an estimated
254. ;However, with the increase in statewide sales tax (from
7.25 percent to 7.5 percent) brought in by Proposition 30, a boost
in income tax rates for the next seven years on incomes over
$250,000, the
newly implemented cap-and-trade program ;and an elimination
of many business tax loopholes by Proposition 39 more and more
companies may be persuaded to move states. ;
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