Tuesday, December 13, 2011

Sacramento Garbage Co. Moves To TexasTo Avoid Taxes

Another California born company has made the move to Texas  to avoid paying their fair share.


The CEO of Waste Connections garbage company founded in Sacramento is moving his company to Texas. He says California has the highest tax burden of any state that they do business in. He said that the housing collapse in the Sacramento area is hard on his employees and so he is moving 95 percent of his workers to Texas.
The garbage will stay in California where other companies that want to do business here will get to divide up the work and contracts.
Every time a company leaves California a window of opportunity for smaller businesses opens up. Recently, Carls Jr. announced that they were considering a move to Texas for some of the same reasons.  Although they got their start from the hard work of people in California like my dad, they are now too good for us and seek the shelter of a state that favors business over people and their health.  Look up Texas environmental standards. Here's another link about the differences Texas has to offer over the other states.
Consider that In-n-out Burger started in California and is still family owned.  They recently opened two locations in Texas and have caused traffic jams from people trying to get away from other Texas food seeking a Double Double and fries. They pay their employees more on average than Carl's Jr., have a better reputation and are always busy.
San Francisco just announced that the minimum wage there would go to $10.24 per hour starting in January 2012.
 This will undoubtedly make more companies leave San Francisco and go to the plains or deserts where they won't have to compete with quality, freshness, happy cows and higher taxes.  Does this mean that you will get to rent a conference room in San Francisco for any where near the cost of one in Dallas? No way. San Francisco doesn't have a problem filling rooms or renting space. They don't have high unemployment either. It is the red counties inland that are the worst jobs creators. Even there in those inland California red counties, you don't see the right wing radio stations leaving because they can't sell advertising.  If they could get a signal to reach Fresno  and Sacramento from Nevada they would but geography is what is is.

Should California aim low? Heck no!

We should do our best to stop losing business in this state but in many cases the decisions from businesses are really more ideological or greed driven than practicality.  Some of these businesses are moving to a low wage and low rent state.  That's where they want to be.  Unlike the garbage company that just plain out doesn't want to do business in California, most businesses that move will still want to sell stuff to Californians.  We should be aware of our local businesses and support them,  even when they are highly successful and known world wide.  Likewise we should recognize those that have jumped ship and find locals to fill that void.  It is in our own best interest as Californians.  Maybe one day we will be so successful that we can lower taxes, but until then, we can't compete in a race to the bottom.

3 comments:

  1. "...but in many cases the decisions from businesses are really more ideological or greed driven than practicality." Any "BUSINESS" that is motivated by anything other than GREED is not a "business". Think about it. "Business Ethics" is an oxymoron.

    That doesn't mean businesses do not have to be responsible for their actions but the reality is that businesses are driven by one thing: profit. If there is no profit in it, they will not last. It is just that simple.

    You are dead-right about the opportunities being created by companies leaving California. The hardest part will be finding a replacement that can maneuver through the environmental laws and still make a profit.

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  2. You seem to believe that the economic well being to the state of california begins and ends within the city limits of san francisco. You of course know better.

    Perhaps you ought to become more familiar with the unemployment levels in the central valley of this state, you might actually learn something.

    For reasons unknown, you seem to have zero interest in this state either retaining or gaining a more resilient employment base. That remaining companies in a particular business segment may gain new business as their competitors flee the state is hardly a winning strategy.

    Wake up and smell the coffee.

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  3. You guys can't possibly believe that jobs lost when a company leaves california are replaced one for one by other businesses. You don't believe that do you?

    And let's for a moment, set aside the issue of companies leaving the state and let's hear about the companies moving INTO the state.

    What has been the record of the state of california over the last five years in attracting good paying jobs into the state?

    This state cannot possibly survive on the city of san francisco and silicone valley alone.

    ReplyDelete

US Senator Joe Liberman, WTC 7 Did Not Occur