This is an excerpt from an article in California Globe published on January 30, 2021.
If you want to check me out or want to read the entire article, click here: Tesla's Elon Musk Leaving the Golden State for the No Income Tax State - California Globe
If you want to just read my Excerpt, it is in orange (mostly) below but, before the Excerpt, let us hear from California Assemblywoman Lorena Gonzales who Tweeted... “F*ck Elon Musk”.
Begin Excerpt:
“The California
exodus is real.
California
Globe reported in
September that the Hoover Institution’s Lee Ohanian warned
about this. “California businesses are leaving the state in droves. In just
2018 and 2019—economic boom years—765 commercial
facilities left California. This exodus doesn’t count Charles
Schwab’s announcement to leave San Francisco next year. Nor does it include
the 13,000
estimated businesses to have left between 2009 and 2016, Ohanian
said. “The reason? Economics, plain and simple. California is too expensive,
and its taxes and regulations are too high.”
If that isn’t
enough, the San Francisco Business Journal interviewed one
of California Globe’s business
subjects, longtime Sacramento, California developer Paul Petrovich,
who “says he is among the 30,400 wealthy Californians who will have to pay
California’s wealth tax if it’s approved — so he’s moving to Austin.” Petrovich
said “he will move both his residence and company, Petrovich Development Co.,
over the next two years, or as soon as he’s able to sell his holdings in
Northern California and re-establish the company’s headquarters in the Texas
capital.”
Musk will have
plenty of company from California.
“Getting out of
California, with the highest income tax in the country, and into Texas, which
has no state income tax, could save Musk
billions of dollars based on his compensation
package awarded in 2018,” CNBC said.
“To help lure
Tesla’s new factory, local officials granted the company tens of millions of
dollars in property tax breaks.
Musk confirmed on
the company’s second-quarter earnings call in July that the plant would occupy
about 2,000 acres 15 minutes from downtown, and would be used to build the
Cybertruck, its Semi, Model 3 and Model Y. Musk said the factory will start delivering
cars next year.”
Real estate is
a big motivator for Musk. As the Globe reported,
“The once-great state of California has become a minefield for commercial real
estate investment and development and things will be getting worse, not
better,” Joseph J. Ori, Executive Managing Director of the Paramount Capital
Corp., a Commercial Real Estate Advisory firm wrote.
“The assault on real estate in California has been occurring for years but has
been done under the radar with small anti-real estate changes here and there
that overall, had little effect on the industry. However, anti-real estate and
business legislation hit overdrive about three years ago and has accelerated
with a myriad of new laws and regulations.”
Ori warned that
during the last two years, numerous legislative actions have been enacted or
were on the 2020 ballot in California “that will negatively affect the CRE
industry.”
Ori added,
“California is becoming very inhospitable to the CRE industry and business in
general and with these and other anti-real estate laws, it may be time for
investors to demand substantially higher cap rates or decline to invest in
California real estate altogether.””
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Pop Quiz: True or False...California Assemblywoman Lorena Gonzales is a Savvy Business-Friendly Public Official who is going to generate a lot of Tax Revenue for the State of California every year she is in office.
Would I kid u?
Smartfella