Friday, April 16, 2010

Economy News: Bad times for California economy, unemployment rates increases

California is facing a problem: They have to choose between high taxes or more jobs.

High taxes brings (theorically) more income to California. Of course, things aren't as easy as that, as raising taxes pressure companies to move to other states. Raising taxes then, pushes away companies, and the money of their taxes and, an important issue: Draws away jobs.

California, then, is struggling with the highest unemployment rate among the United States, while many private-sectors companies are heading to other states, like Texas where taxes are way lower, as their regulations are.

"I would love to have companies calling me saying, 'We'd like to move to California, can you help us with that relocation?' I get none of those calls," says business relocation coach Joe Vranich. "The calls I do get are, 'Hello, we want to move out of California, can you help us do that?'"

California state, sees as his unemployment rates grows and grows, despite the fact that goverment are hiring more and more workers.

Check the video that Reason.TV has recorded, with interviews of Joe Vranich, a business relocation coach and Take Rick and Jack Newcombe, the father-son team that runs Creators Syndicate


Reason Tv: More taxes or more jobs? California shows we can't have both

L.A. Times: Going for broke in L.A.?

Related articles: South California house sales increase in March, "propped up" with FHA-insured loans

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1 comentaris:

Tommy said...

Oh man, that's depressing for me as a Californian. I think it's very true that California has a hostile reaction to businesses, that is growing with the growth of government.

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