Sign California Banking Moving Checklist Safe

Industry sign banking california moving checklist safe

for as long as anybody can remember california has ranked among the most desirable places to live on earth its majestic redwood forests world-class education system sandy beaches beautiful people and global food scene have cemented its status as a proven mecca for big money and talent but all that seems to be changing an exodus of tech firms has recently decided to up sticks from the golden state and make their homes in a very different corner of the united states so today we're looking into the burning question why are companies moving from california to texas last year according to data from the u.s census bureau 653 000 people decided they'd had enough of california's glossy charms and opted to set up home elsewhere the most popular destination for these relocators texas internal migration trends like these are always complicated but it's worth noting that this texan exodus has really picked up pace this year with some very high profile people and companies making their way out to the lone star state let's look at a few in july elon musk announced that the biggest u.s tesla car plant to date would be built on the outskirts of austin texas and that's no small thing representing a 1.1 billion investment in the region not to mention the creation of around 5 000 high-skilled jobs musk's personal residence is now reportedly also in texas as well as a new base for his drilling operation the boring company just established in flugerville part of musk's reason to move there is no doubt so he can be closer to his beloved spacex base in boca chica south texas that's where musk's starship rockets are currently being developed and tweet ready for a future mission to mars but there's also significant push factors actively driving musk away from california back in may musk had a very public bust up with californian official lorena s gonzalez after his fremont california tesla factory was forced to close as part of the state's efforts to tackle the spread of coronavirus musk was furious at the order to close and issued a tweet saying his company would be filing a lawsuit against alameda county immediately the unelected and ignorant interim health officer of alameda is acting contrary to the governor the president our constitutional freedoms and just plain common sense frankly this is the final straw tesla will now move its hq and future programs to texas nevada immediately if we even retain fremont manufacturing activity at all it will be dependent on how tesla is treated in the future tesla is the last car maker left in ca lorena gonzalez stated her position succinctly elon musk to which musk cooley replied message received but it isn't just hot-headed upstarts ragequitting california lately hewlett-packard enterprise the 21st century iteration of the firm founded an apollo alto garage by bill hewlett and david peckhard in 1939 is also making tracks toward texas the firm considered by many as the great granddaddy of silicon valley tech giants is building a state-of-the-art campus on the outskirts of houston a statement by hewlett-packard enterprise hinted at the reasoning for the move saying houston is an attractive market to recruit and retain future diverse talent similarly database software giant oracle just announced it was moving its headquarters to austin because as a spokesperson put it we believe these moves best position oracle for growth and provide our personnel with more flexibility about where and how they work so what makes texas more attractive from a staffing point of view if you're currently yelling taxes at your screen well you're halfway right the corporate tax situation actually isn't so different between the two states although president donald trump's controversial slashing of the federal corporate tax rate from 35 percent to 21 in 2017 definitely made state taxes more of a priority for company bean counters seeking to cut costs experts believe that's not enough in itself to encourage a wholesale move however the tax situation for individual workers is very different indeed californian income taxes for high earners work out at 13.3 percent tax and income rates are rather more let's say competitive at zero percent that means an executive moving from california to texas will enjoy a substantial instant pay rise and they can do a lot more with that money california and especially the big tech hub cities like san francisco and palo alto suffer from exorbitant property prices in houston a well-paid tech worker can afford a much larger house and a better overall quality of life with it even culturally texas isn't so different from california although texas is famously conservative and defiantly red state in its outlook places like austin with its healthy 47 rate of degree educated workers and hip cultural happenings like the annual south by south west festival increasingly give groovy kelly a run for its money podcast host joe rogan who famously smoked weed on screen with elon musk is also making the move rogan reportedly just bought a 14 million mansion on lake austin with eight bedrooms and 10 bathrooms hot on the heels of his unprecedented 100 million deal with spotify more important than taxes and culture however the biggest driving force behind the current exodus has been the coronavirus pandemic a study from leading corporate consultants gartner found that around three quarters of chief financial officers anticipate ever more employees would work from home permanently after this year proved that this was not only feasible but even desirable in many cases if that's true of companies in general it's especially true for tech firms and naturally if you're working from home why would you go to the expense and hassle of living in a big city when you could enjoy a much larger property somewhere out in the countryside california's regulatory framework is also cited as a factor in companies seeking to shift operations to more lasse fair texas deep blue cali critics argue abuse it as legal and legislative muscle to bully corporate decision makers whether or not you think elon musk was right to keep his factory open during a pandemic it's easy to see why corporate bosses look at plans to for instance cap executive pay relative to frontline workers with a fair dollop of skepticism musk has isilly suggested californian leaders have much in common with an arrogant sports team after decades unchallenged at the leading edge of the tech sector if a team has been winning for too long they do tend to get a little complacent said musk they're a little entitled and then they don't win the championship anymore musk also spoke scathingly of california's oppressive regulatory regime in language designed to cut to the very heart of what makes the state so special you have a forest of redwoods and the little trees can't grow however it's plain to see that the big well-established california star wars like google facebook and apple with its shiny new four billion dollar headquarters aren't going anywhere for now and so however many fresh-faced upstarts like vape manufacturer joule drag their operations out to texas it seems the cali tech dream won't be going up in smoke anytime soon [Music]