First off, the California Corporate tax rate is one of the highest in the country at 8.84%, one of the highest in the country, but only results in $12 Billion in tax dollars to the State. Now, lets see just a few of who left recently, and to where, and why……
Nestle - $335 Billion USD in Market Value - Virginia (6% Corp Tax)
Toyota - $205 Billion USD in Market Value - Texas (0% Corp Tax)
Elon Musk - $189 Billion USD in Market Value - Texas (0% Corp Tax)
Oracle - $170 Billion USD in Market Value - Texas (0% Corp Tax)
Charles Schwab - $107 Billion USD in Market Value - Texas (0% Corp Tax)
Digital Realty Trust - $41 Billion USD in Market Value - Texas (0% Corp Tax)
McKesson - $28 Billion USD in Market Value - Texas (0% Corp Tax)
CBRE Group - $23 Billion USD in Market Value - Texas (0% Corp Tax)
Jacobs Engineering - $13 Billion USD in Market Value - Texas (0% Corp Tax)
Hewlett Packard - $16 Billion USD in Market Value - Texas (0% Corp Tax)
Now, there are hundreds (if not thousands) of companies that have recently left California due to high taxes and little in return for those taxes (beyond wasteful spending). Just there ten companies equate to over $1.1 TRILLION USD in Market Capitalization and Jobs that literally picked up and left the State of California.
I searched the web, I cannot find any references to any large corporations moving to California.
Ever gotten a Credit Card in the mail from South Dakota? Why, because all of the Credit Card companies are based in of all places, South Dakota. Why? Well, one big reason is NO CORPORATE INCOME TAXES.
So, we have identified a problem, and let’s create a utopian state free of Personal Income Taxes, free of Corporate Income Taxes, free of an “out of control homelessness” problem, and one with legalized prostitution.
Now, we are going to have to “pay to play” here in California, and we will be getting to balancing the budget as this going along. But, if the Great State of California rids itself of Personal Income Taxes and Corporate Income Taxes, we will again become the “World’s Home of Business & Innovation”.
STATE COSTS: Eleven Billion in Lost Tax Revenue.
NOTE: This blog is only for conservational ideas and I have ‘zero point zero’ percent interest in running for any political offices.
The Score so far on State Budget:
Plan One: Eliminate California State Income Tax
· Resulted in $90 Billion Deficit
Plan Two: Decriminalize Prostitution in California
· Resulted in $1 Billion in State Revenues
· Still have a $89 Billion Deficit, but we have no State Income Taxes and we have Decriminalized Prostitution in California.
Plan Three: California Mortgage Tax
· Resulted in $7 Billion in State Revenues
· Still have a $82 Budget Deficit.
Plan Four: California Real Estate Transfer Tax
· Resulted in $30 Billion in State Revenues
· Still have a $52 Billion Budget Deficit.
Plan Five: Ending the California Homelessness Epidemic
· Resulted in increased state spending, followed by State Budget Savings over many years. Total costs, I could not even come up with a guess, but would try to work within the current budget by utilizing current state land owned, governmental facilities, and current government programs. I am calling it “Even Steven”
· Still have a $52 Billion Budget Deficit – but we have a No Income Tax State, Prostitution is Legal, the Wealthy are Paying their Fair Share, and the streets are less cluttered with homeless.
Plan Six: Ending the State Corporate Income Tax:
· Resulted in a loss of approximately Eleven Billion USD in Annualized Tax Revenues.
· $63 Billion USD Deficit
About Steve Muehler Portfolio of Companies (Steve Muehler Holdings, LLC):
Steve Muehler – Paralegal: www.SteveMuehlerParalegal.com
Steve Muehler – Investment Banking: www.SteveMuehlerSecurities.com
Steve Muehler – Annuities: www.SteveMuehlerAnnuities.com
Steve Muehler – Debt Capital Markets: www.SteveMuehlerDebtCapital.com
Steve Muehler – Equity Capital Markets: www.SteveMuehlerEquityCapital.com
Steve Muehler – Real Estate Loans: www.SteveMuehlerLoans.com
Steve Muehler – Insurance: www.SteveMuehlerInsurance.com
Steve Muehler – Commercial Insurance: www.SteveMuehlerCommercialInsurance.com
Steve Muehler – EquityLock Residential: www.EquityLockResidential.com
Steve Muehler – EquityLock Commercial: www.EquityLockCommercial.com
Steve Muehler – Bail Bonds / Immigration Bonds: www.SteveMuehlerBail.com
Additional Online Resources:
About Mr. Steve Muehler, Founder & Senior Managing Member:
Personal Site: http://www.SteveMuehler.com
Personal Site: www.StevenMuehler.com