Toyota Relocating Corporate Offices To Texas

[4-2-7]

Originally Posted by bobabode

"Toyota exit from Torrance inflames Texas/California rivalry" LATimes
http://www.latimes.com/opinion/topof...#axzz30h5HjToL

Of course the $40 million gift from Texas taxpayers has nothing to do with this....

Ya Bob nothing to do with operating a business and again this is an extremely small incentive. So that mean Toyota is moving for much bigger reasons, gee I wonder what they could be?

[4-2-7]

As recently as the 1980s, California still had the aura of an unstoppable growth machine, and such a view would have been unthinkable. Now, Texas is the object of economic envy and California is the object lesson, the toxic state.

It's a partisan narrative to be sure, with Republican-run Texas as a low-tax, right-to-work mecca for business. But propaganda aside, though, there is statistical reality to the idea that Texas is rising and California is falling back. In 2000, California’s jobless rate was 4.9%, while the Texas rate was 4.4%. Ten years later, that half-percentage-point gap had widened to more than four points: 12.4% to 8.2%. Texas is also adding more jobs than California, which has 50% more people.

Californians needs to ask if the state has started a cycle of decline, in which a loss of jobs to other states leads to a loss of tax-paying residents, and in turn to a deterioration of the public services that make the state even less desirable for businesses. This “toxic state syndrome,” as it might be called, could be very difficult to shake. The businesses that bring jobs (or take jobs with them when they leave) look for certain things: a skilled work force, relatively low costs, sound infrastructure and public services, and—maybe most important of all—some assurance that these conditions will stay the same.

A state in chronic fiscal distress can’t offer such predictability, and California is a very distressed state. For most of the past decade, its credit rating has been at or near last place in the nation; currently it is rated the lowest by Standard & Poor’s, and Moody’s ranks only Illinois lower. Texas, on the other hand, is just one notch from the top on the S&P scale.

Californians could make things worse this November when voters decide on a measure, backed by Gov. Jerry Brown, to raise its income tax rates (already near the highest in the nation) to prevent deep cuts in school spending. That might produce a temporary burst of revenue but leave the state even more dependent on a volatile revenue source. Then again, if the tax hike doesn’t pass, schools will take a hit that could leave California that much less attractive to employers and employees.

What may be most damaging about California’s tax debate is its tone of desperation. The state is like a man at the end of his rope who has taken hostages—in this case, the schools. Meanwhile, Texas and other states are poaching California jobs with tax incentives at a scale that California state and local governments can’t afford, most recently with the $36 million package of tax breaks and investment funds that convinced Apple Inc. to expand in Austin and add some 3,600 jobs.

http://www.thedailybeast.com/article...xas-rises.html

[4-2-7]

Two dozen companies commit to leaving California

Feb 18, 2013

Two dozen California companies have said they are tired of the business-bashing in Sacramento, along with the high taxes.


The day after Proposition 30 passed, triggering $6 billion in new annual taxes, Arizona launched a campaign to lure some of California’s top companies.

KCRA 3 has learned that 24 chief executives are flying to Phoenix, Ariz., to explore the land of lower taxes and a much friendlier business environment.

Business relocation expert Joe Vranich has been counting.

“I tracked for 2011, that 254 companies of all sizes and shapes and kinds left the state for primarily other states,” said Vranich, the president of Spectrum Location Services in Irvine.

He told KCRA 3 that companies leave California for three primary reasons: “High taxes, excessive regulations and the threat of really ridiculous lawsuits.”



Read more: http://www.kcra.com/news/Two-dozen-c...#ixzz30l0tzK82

[4-2-7]

Thanks Bobby Boo Boo

Nice of you to show everyone the ills of Democratic economic policies.

Too bad Obama is following California's lead in case your wondering why this country is not on track yet.

Although for me business is accelerating because of the need of work on the 1%ers homes.

[mpholland]

If I get this correctly, these are corporate/management jobs and not manufacturing jobs so the union question is pretty much a moot point. I also get the impression that Toyota was going to move somewhere else to consolidate, no matter what. It sounds like Toyota is going to offer many of their current employees the opportunity to move to Texas and keep their jobs, which could work out even better for the employee as long as they are paid the same.

[Rajoo]

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

[mpholland]

Originally Posted by BeamOn

Texas to pay $10,000 for each Toyota job relocated
www.marketwatch.com/story/texas-to-pay-10000-for-each-toyota-job-relocated-2014-04-28

This is bribery. I don't believe that the state of Texas is paying this bribe to relocate workers from other states, especially California. Question I would have is if the cost of operation is so much lower than California, why didn't they move on their own rather than be enticed monetarily?

It is a rhetorical question.

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

[Rajoo]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to a few key places, Texas just happened to be willing offer a big financial incentive to boot.

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

[mpholland]

Originally Posted by BeamOn

Agreed. I have not looked into all of the details of the Texas transaction, but my intuition tells me that relocating current employees from California is not in the cards. Typically a state (or city) will offer incentives based on the number of "local" jobs they create.

Typically, corporate jobs are offered an opportunity to move with the company. Since this is a fairly extreme restructure, I am sure there will be some job loss as they are bringing folks from New York and Kentucky, as well as from California. I don't think there are going to be a whole lot of Texans working for Toyota for a while. It will however bring a lot of money to the local economy with several thousand new people spending money and paying taxes, plus a whole lot of Texans working to build the facilities.

[4-2-7]

Originally Posted by mpholland

They were going to move on their own. They had already narrowed it down to Denver, Atlanta, Charlotte, or Dallas.
Texas just happened to be willing offer a big financial incentive to boot.

I keep saying the incentive is mute as it's extremely lower than what other states offer big corporations.