Dtknuckles
Well-Known Member
Yesterday there was an Apple News+ story and podcast about how many corporations are ditching Silicon Valley for Texas or Florida. Elon Musk and Tesla being the latest to announce that they are moving their corporate head courters to Austin Texas.
There are three main contributing factors driving companies out of California.
First off is both Texas and Florida have no income tax. This means that CEO's and other executives can bank a lot more profit as they don't have to pay state income tax, and California has one of the highest income taxes in the nation.
Secondly is the cost of real estate is sone of the highest in the nation in Silicon Valley. Corporations can save a lot of money by getting cheap real estate in states like Texas or Florida.
Lastly, COVID-19. Many corporations are unhappy with California's "draconian" COVID-19 restrictions. Elon Musk in particular who has been publicly against Californias restrictions has made this one of the top reasons to move Tesla to Texas. In addition, when it comes to the tech industry, COVID-19 brought working remotely, and post COVID many companies are keeping these policies. So that means they don't need to be in a tech hub to get talent. The majority of their work force can work remotely from where ever they live. So again, this means they don't need such a large corporate office or be located in the expensive tech hub that is Silicon Valley. So covid has helped accelerate the second reason listed.
they have been saying this for ages, but CA economy has kept growing and so has the population.