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California is the worst State to do business in the US?


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2012 May 15, 3:45pm   10,589 views  27 comments

by American in Japan   ➕follow (1)   💰tip   ignore  

Has anyone read this article?

http://ncwatch.typepad.com/media/2011/05/california-worst-place-to-do-business-chief-executive-magazine.html

This one lists California #1 for business in 2 categories.
http://www.cnbc.com/id/41665883

How can the trend be reversed?

Comments 1 - 27 of 27        Search these comments

1   nope   2012 May 15, 5:41pm  

American in Japan says

How can the trend be reversed?

By getting data from a different source? Both the recent Forbes and Businessweek surveys put california in the top 20 states.

These kinds of surveys are kind of dumb anyway. Different states are better at different things (and even regions of states).

Want to start a tech company? Go to silicon valley. You won't find a better labor pool, networking opportunities, or funding anywhere else.

Want to start a bank? Go to NYC.

Want to start a film studio? Try LA.

Want to start a labor intensive consumer electronics factory? Go to Shenzhen.

These surveys are usually based on a single dimension like labor costs or taxes. If you go only on those things, you'd believe the places to start a business are in third world countries.

2   American in Japan   2012 May 15, 6:45pm  

The article actually surprised me. I posted this one rather on a knee-jerk.

>These surveys are usually based on a single dimension like labor costs or taxes. If you go only on those things, you'd believe the places to start a business are in third world countries.

True dat!

3   epinpb   2012 May 16, 2:41am  

Lower the cost of businesses, which is directly tied to high labor costs, which are directly tied to artificially inflated land values.
Improve the efficiency of businesses, including the transportation infrastructure, structure of business zoning, and workforce training (education).
Lower the taxes of businesses to encourage international competitiveness.
Get the govenment out of education, housing and healthcare...the 3 largest and most inflated costs directly tied to the business efficiency, as well as the quality of your life

4   rooemoore   2012 May 16, 2:45am  

For small business, we get an F

http://www.thumbtack.com/survey

5   freak80   2012 May 16, 3:00am  

Kevin says

Want to start a bank? Go to NYC.
Want to start a film studio? Try LA.

The only two "industries" left in America. Sad.

6   freak80   2012 May 16, 3:49am  

APOCALYPSEFUCK is Tony Manero says

You can cook meth

A popular industry around where I live. Especially in Elmira and Binghamton.

7   MisdemeanorRebel   2012 May 16, 3:58am  

APOCALYPSEFUCK is Tony Manero says

You can cook meth or go to work as a televangelist if you're ambitious.

Believe it or not, the porn industry is saturated with applicants. I'll have to find the article.

It was something like "15 years ago, we'd have a dozen or so girls, without agents, coming to see us at auditions for new talent, mostly strippers. We'd have to spend thousands to advertise in the weeklies for "nude models". Now we get hundreds of gals showing up to auditions and we don't even have to advertise, it's all by word of mouth."

8   vbcoder   2012 May 16, 10:25am  

The perception that California is probably dead last is accurate. For those of you who have been here since the 50s and 60s think of all the companies that used to be here and left. General Motors had a plant once in Van Nuys. Hanna Barbara had an animation facility in Reseda. Price Pitzer brass manufacturing was once in Sylmar. Just about all of the aerospace companies are gone now.

Even Amgen in Thousand Oaks does a lot of their R&D now in other countries.

Today, an entrepreneur who just loves living here, and is here already will take a chance. But, all others pick states with lower taxes, lower workers' compensation, less ways for people to sue you, less confrontation from government every day.

If you just get into a circle of business people these days and ask them about starting up a business in California, they will think you are crazy.

Not many people in government get this.

9   coorsbay   2012 May 16, 11:17am  

el lay is north mexico now

10   art   2012 May 16, 12:38pm  

California should declare bankruptcy. This would allow for entitlement pensions, union money give-aways, legislature misappropriations and pork to stop. If only politicians were held accountable for bad financial behavior we would not be in this mess. The only way to survive is for individual citizens to declare that they are illegals to get benefits. This would make the illegal politicians howl but then they won't do anything anyway as proven by their past and current behavior.

11   nope   2012 May 16, 1:34pm  

wthrfrk80 says

Kevin says

Want to start a bank? Go to NYC.

Want to start a film studio? Try LA.

The only two "industries" left in America. Sad.

Yeah, other than:

- Automobiles
- Software
- Aviation
- Heavy machinery
- Agriculture

and dozens of other industries where the U.S. is the global leader, we have no industry :(

12   thomas.wong1986   2012 May 16, 2:25pm  

Kevin says

Want to start a tech company? Go to silicon valley. You won't find a better labor pool, networking opportunities, or funding anywhere else

30-40 years ago.. yes...
Today ? NO.. we are way way down compared to the past...

you cannot even come close to doing today the many things we did back than. Mainly due from govt regulations, taxes, and high costs.

today, its the big money from Texas like Dell and Texas Instruments that are buying up CA companies.

13   A different username   2012 May 16, 2:47pm  

How is a high unemployment rate a turnoff for business? That implies that workers are available and it's an employer's market.

14   thomas.wong1986   2012 May 16, 2:51pm  

A different username says

How is a high unemployment rate a turnoff for business? That implies that workers are available and it's an employer's market.

High unemployment rate for Tech workers in BA is RESULT of higher costs compared to other cheaper regions.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/05/13/BUG91PO3US1.DTL&ao=all#ixzz1v6EFUJaI

"Hewlett-Packard and Dell are the top two computer-makers in the world. Corporate headquarters for HP are located in Palo Alto and Dell is in Round Rock, Texas. Obviously, they both have people and facilities around the globe.

In those two communities where their corporate headquarters are and where a lot of research and development takes place, the median resale price for a home in Palo Alto is about $1.6 million. In Round Rock, Texas, it's about $180,000, except the home and property are bigger.

We hear from HP all the time that a huge deterrent to the ability to recruit and retain people anywhere near Silicon Valley is the housing issue. We don't hear that from Dell, which is also a member company, about their operations in Round Rock. It does continue to plague us and we will continue to sound the alarm."

15   berick   2012 May 16, 5:44pm  

What a moronic statement, another stupid survey.

"These surveys are usually based on a single dimension like labor costs or taxes. If you go only on those things, you'd believe the places to start a business are in third world countries". Now that makes sense.

If California is so bad, why is it the world's ninth largest economy (when compared to other countries and to other states as though they were countries)? Why does California have Facebook going IPO, Google, Apple aiming for $1T value, movie studios making the biggest gross of all time Avengers, etc etc. Sure housing prices are high and that's a problem for hiring. Sure the gridlock in state gov is a problem, with education and transportation cuts that may affect future prospects. But here and now California is a great place for some of the most-wanted businesses in the world.

17   freak80   2012 May 17, 12:49am  

It sounds like CA needs to increase property taxes in order to reign in absurd land values. Of course three interest groups will fight tooth and nail against it:

1) current land owners
2) banks, who make lots of interest
3) Realtors, who make fat commissions

18   thomas.wong1986   2012 May 17, 2:33am  

berick says

If California is so bad, why is it the world's ninth largest economy (when compared to other countries and to other states as though they were countries)? Why does California have Facebook going IPO, Google, Apple aiming for $1T value, movie studios making the biggest gross of all time Avengers, etc etc.

fb, goo, Apple and many others are not California companies.. they are Delaware companies...

facebook ? see page 6 of S-1.. "We were incorporated in Delaware in July 2004"

As for Hollywood.. thats gone years ago.. the film companies are owned by the likes of Sony (JP), Viacom (NY), News Corp (AU), AOL Time Warner(NY).

Employment ? well even the biggest SV companies employ more outside of state than CA itself.. HP over 200K but certainly not in CA ...

Goods and Services... Much of the hard products are mfg in Asia and Services are provided regionally.. so its rather different method of counting GNP/benefit for the state.

LOL! you certainly dont hear many complaints coming from Intel employees in the NorthWest or SouthWest.. and their states are more than willing to attract more business/jobs. The state govt keeps ignoring the obvious!

19   thomas.wong1986   2012 May 17, 2:36am  

bryan says

Repeal Prop 13. http://www.wealthandwant.com/themes/Prop13.html

LOL! just tax the advertisng clicks from FB, Google and Yahoo!

20   JG1   2012 May 17, 2:48am  

How can this trend be reversed? Compare the best states to do business - they have GOP governments.

See also http://news.investors.com/article/453857/200812221906/california-scheming-what-one-party-rule-is-doing-to-once-golden-state.htm?p=full

21   JG1   2012 May 17, 2:51am  

berick says

If California is so bad, why is it the world's ninth largest economy (when compared to other countries and to other states as though they were countries)? .

First, it just slipped - it used to be 8th not so long ago.

Second, population is part of it. Alaska is not going to be the 9th biggest economy based on its population alone, vs. California's. But the "red states" with low taxes and business friendly environments are generally growing and the old guard blue state tax and spenders like New York, Massachusetts, and California are losing ground. Businesses and individuals are voting with their dollars and feet and thus Texas is growing, California is not. Look at the congressional seat apportionment - who gained, who lost.

22   MoneySheep   2012 May 17, 3:46am  

I agree that CA is not a good place to do business from tax point of view.

A good way to get around this is to domicile in NV, but sell stuff in CA. Apple is doing it, saving billions of tax.

I wonder if Facebook is doing it too?

23   bob2356   2012 May 17, 9:40am  

MoneySheep says

A good way to get around this is to domicile in NV, but sell stuff in CA. Apple is doing it, saving billions of tax.

They actually save most of their taxes by washing it through Ireland, then the Netherlands, onto the caymans taking advantage of the loopholes in the laws of each country. They sidestep state income tax by washing it through NV.

24   thomas.wong1986   2012 May 17, 2:38pm  

Not really a Loophole since that is how it was designed by Ireland to attract business interest. Ireland also requires corporations to hire staff there, Irish citizens and paying PR, Benefits, and taxes. Its all foreign sales anyway.

Anyway, Delaware is the same way.. but you sure dont hear Bidden or any other Liberal talking about it... No not one word why so many US corporations register in Delaware.

What are you gonna do about it anyway. Bomb Ireland ?

25   oliverks1   2012 May 17, 3:22pm  

thomas.wong1986 says

Mainly due from govt regulations, taxes, and high costs.

Which explains why Germany sucks wind so bad. For example, Volkswagen only made $20 billion last year? They are being strangled by taxes and regulation.

Greece on the other hand has low taxes, due to avoidance, and "negotiable" regulation. So it is booming I tell you, booming.

26   American in Japan   2012 May 18, 6:22pm  

wthrfrk80 says

It sounds like CA needs to increase property taxes in order to reign in absurd land values. Of course three interest groups will fight tooth and nail against it:

1) current land owners

2) banks, who make lots of interest

3) Realtors, who make fat commissions

This one gets my "thumbs up". It might not be such a bad thing if a State is bad for multi-national megacorps to do business. I just hope California is good for small businesses. Well whether or not you like the article above, it is good to see people commenting on this topic.

27   afela123   2019 Aug 15, 11:15pm  

spam

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