CALIFORNIA, USA — A report out from the California Taxpayers Association lists several more companies, like Amy’s frozen foods, that are closing down factories, leaving California entirely or choosing to expand elsewhere.
Some people have likely already heard of other companies like Tesla or Chevron making the same decision.
Two things, however, can be true at the same time. California is the highest contributor to the national production economy, and California is losing companies and taking jobs with them. The second one is not going unnoticed.
David Kline has a deep love for California.
“We got the weather, we have great universities, we have diverse population. you could go see any band you want any day of the week," Kline said.
He also has a deep understanding of why, for many companies, that’s not enough.
“For the last several years, actually quite a few businesses are leaving California or creating jobs in other states instead of expanding here, and that includes some businesses that have been around in California for many, many years,” Kline said
As the spokesperson for the California Taxpayers Association, Kline said the reason is taxes.
“We've seen financial firms moving businesses to or moving headquarters to other states," Kline said. "So it's not that we're just losing, but we are losing important jobs.”
Kline said there are still companies that are starting up in California or even coming here.
“Whether the net job loss is evened out is not really the situation, not the problem, the problem is that we are losing jobs that we should be able to keep here,” Kline said.
Lee Schalk is the policy director for the American Legislative Exchange Council, a non-partisan organization made up of legislators from across the country to exchange best practices.
“I think it's very telling that California, from 2020 to 2021, they lost 261,000 people on net, while bordering Arizona gained almost 100,000, Texas gained 310,000, and Florida 211,000,” he said
Governor Gavin Newsom, in response to Roe vs. Wade being overturned, encouraged companies that have left the state to make their way back.
“That's something that could be compelling if they agree with him, but I think something that he is losing out on right now are those businesses that are concerned with their bottom line," Schalk said. "I think for those businesses that are concerned with that, and for the financial well being of their workers, I don't think it's enough to keep them in the Golden State.”
Kline said there are things that California's high taxes pay for that other states don’t have, but added high taxes don’t always equal better outcomes. Other states with lower taxes can have better roads, education, etc.
Kline said there is a bill making it’s way through the legislature right now that would exclude companies from paying sales tax on production equipment over a few million dollars. Kline said this would make California more competitive.