Credit to Conservative Tribune – February 23, 2017 –
1200 jobs will be lost when food and drink giant, Nestle, leaves California for business-friendly, Virginia.
Virginia’s minimum wage is $7.25. California’s burdensome taxes, skyrocketing cost of living and culture of anti-corporate activism plus $16 million in a variety of tax incentives by Virginia all played a part in Nestle’s decision to move the chocolate company out of California.
According to award winning Investors Business Daily, associate editor, Terry Jones calling California, “one of the worst places to do business.”
One relocation expert states from 2008 4hrough 2015, at least 1,687 California companies moved operations out of the state.
What did that do the economics of California? The state is also losing residents as middle class workers pull up stakes to follow the jobs out of state. California lost more than 1 million middle-class residents, representing a net loss of about $26 billion in annual income, from 2004 to 2013, according to IRS data.
Toyota and Occidental Petroleum have both picked up stakes and moved to Texas. In fact, the Phoenix Business Journal reported that $68 billion in capital had left the state in 1,500 “disinvestment actions.” By leaving California, companies are saving 25-35% in operating costs.
If California wants to retain or attract large corporations and create jobs, they better embrace capitalism, start deregulating and stop all the wacky laws that allow any Joe Schmoo to bring a spurious lawsuit, further driving businesses out of our state.
One thought on “Nestle Leaves California Over Economically Strangling Laws”
I find this hilarious. While living in Fresno just over a year ago, there was a terrible drought. (Almost doesn’t seem like it now though). We were receiving $300 fines for the second “offense” for watering lawns or washing our cars. It was also the first time i heard the issues with this company bottling water from California’s water supply and selling it nationally. Totally not fair.
I wonder if they will keep bottling water to sell nationally under various brands, or just up and leave ALL operations. We’ll see.
California is NOT a business friendly state and I think that’s terrible. My vehicle registration for “commercial” is over $780/year while registered as an RV would be about $120/year. If our government was smart, it would charge $1 more to all the RV’ers and knock $100 off the registration of commercial vehicles. This would help incentivise businesses to keep their vehicles registered in California while increasing funds to the State while being negligible burden to the people.
There are so many ways to save the State money yet we keep finding ways to destroy the economic powerhouse California has been. Nestle is far from the only company who is taking their business elsewhere.
Tesla’s Gigafactory almost landed in California but our State didn’t feel the need for it. Instead, we don’t mind building a high speed rail between San Fransisco and LA, which benefits negligible fraction of the people while putting major financial burdens on the state for many generations to come.
They must have learned how to do that from Crescent City. (Water treatment plant, anyone?)
The wage issue is often the straw that broke the camel’s back for a lot of small businesses. Now it’s having an effect on larger corporations as well. I bet Kraft Foods, Rockstar and other companies moving their companies soon.
California is still, however the king of tech, which is why I chose to incorporate here.