The Golden State was once a beacon of prosperity, good times, and endless opportunity, but that reputation has slowly deteriorated over the past two decades, with the pandemic dealing California its latest blow.
A yearlong lockdown coupled with the high cost of living and acceptance of working remotely has caused 53 large corporations to flee the state along with 41 companies of fewer than 100 employees, according to a study by BuildRemote.
TAX AND SPEND CALIFORNIA FACES $25B SHORTFALL IN 2023
Chevron. Hewlett Packard. NortonLifeLock. Kaiser Aluminum. It’s a who’s who of the business world that has moved thousands of jobs during the past two years to less expensive states.
“The Dallas-Fort Worth area today reminds me of what Southern California was like 30 years ago, where First Foundation started, and for me personally, it is nice to return to Texas as my roots are in the South,” Scott F. Kavanaugh, CEO of First Foundation Bank, said last year. “Texas has such a business-friendly environment which gives us confidence.”
2021 tesla model 3 charging, r mFor the first time in history, California recently lost a House seat as its growth flat-lined, the most recent census showed. Texas and Florida were the primary beneficiaries of the outward surge of residents and gained seats.
Despite the pandemic and countless “For Lease” signs posted in California’s business districts, the state had a surprising $75 billion surplus last year. This number has collapsed as missing tax dollars created a $25 billion shortfall, the state announced last week.
The biggest name to announce its departure was Tesla in 2021. Moving to Texas is saving owner Elon Musk $2.5 billion in capital gains taxes.
These are some of the other high-profile moves:
Coronavirus-American AirlinesTEXAS
American Airlines. The San Francisco flight attendant base is shuttered, affecting 400 employees.
Aviatrix, a tech company
AECCOM, an infrastructure consultant
Charles Schwab
Chevron
Oracle
Pabst Brewing
Hewlett Packard
Hewlett Packard 3ParARIZONA
Norton LifeLock
WASHINGTON
Tanium
“The CEO and co-founder of a billion-dollar cybersecurity company has moved its headquarters out of San Francisco because it’s ‘not the city it was,’” BuildRemote said, adding that the Bay Area “just didn’t really work well for us.”
TENNESSEE
Kaiser Aluminum
COLORADO
Trimble, a tech company that trades on NASDAQ
VirtaHealth
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OHIO
Hyperion, a hydrogen fuel cell company
Nexen Tire
INDIANA
Lucas Oil
