Texas best at luring California companies
As the exodus from California continues, Texas sees the most businesses relocating from California, a new Stanford University study shows.
Texas is beating every other state as a destination for California companies by a ratio of 4:1, according to the study by McKinney-based Spectrum Location Solutions and Stanford University’s Hoover Institution.
California company headquarter exits have more than doubled in 2021, study authors Joseph Vranich and Lee Ohanian write, noting, “Every month in 2021, twice as many companies are relocating their headquarters as in the prior year.”
“California is experiencing a serious loss of company headquarters to other states,” they said. “The phenomena, which includes business in nearly all industries, has gone virtually unrecognized by the state’s elected officials and governmental agencies.
“Unless policy reforms reverse this course, California will continue to lose businesses, both large established businesses, as well as young, rapidly growing businesses, some of which will become the transformational giants of tomorrow.”
In the timeframe analyzed, 265 California companies exited, with Texas receiving 114, followed by Tennessee receiving 89.
Texas Gov. Greg Abbott said of the findings, “Our business-friendly climate, with no corporate or personal income tax, along with a young, skilled and diverse workforce, easy access to global markets & predictable regulations attract businesses to Texas from across the nation and around the world. That means jobs!”
The majority, 57, moved to the Austin area. The next largest group, 47, relocated to North Texas, primarily in the Dallas, Fort Worth and Irving areas. Nine moved to Houston; six to San Antonio.
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San Francisco and LA were the big losers. They also have some of the largest homeless populations. The tax consequences of the move are significant for the companies and their employees. They also find a friendlier business climate that avoids the control freak policies of liberals in California. While Austin is an attractive city for the most part it is infested with liberals and they should be wary of the political situation there. North Texas and even San Antonio are probably more business-friendly.
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