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Jumping Ship

I have worked for two companies that had operations in California. Both companies closed shop and moved out of the state. In one case, we shut down a large warehouse facility and moved it about 40 miles across the border to Nevada. The simple act of moving operations resulted in about $1.2M in savings per year because, at the time, California decided that inventory was subject to tax. Hint: large warehouses have lots of inventory.

A list of companies leaving California for the same reason.

11 Responses to “Jumping Ship”

  1. Les Jones Says:

    They’re soaking the rich, where “rich” is “anyone who makes one nickel more than me.”

  2. Spook45 Says:

    Heh, well at least those cats arnt moving to MExico! Im glad they are voting with thier feet, and I hope some of those companies will move ops to TN. Lots of hardworking people here that would love the jobs.

  3. Sebastiantheguywithnoblog Says:

    Nevada is running out of water, and you have to wonder how far behind Utah is in that regard. The whole region is FUBARed. The entirety of CA can’t just up and move to NV.

    The politicians in CA are probably sorry to see those companies leave, but they also know you can’t outsource your grocery store and your WalMart and your car dealership and your fire dept and your hospital to the east. Janitors and checkout workers and nurses aren’t going to commute from Las Vegas. They’re probably content to have the whole state become one big morass of businesses and companies that can’t leave.

  4. Sebastiantheguywithnoblog Says:

    http://finance.yahoo.com/news/Lack-of-skilled-workers-rb-1457929627.html?x=0

    Skilled laborers can’t be outsourced either.

  5. chris Says:

    The dichotomy between fiscally solvent states and ones which are under water will result in a continued (and greater) exodus of businesses to states which have adults in charge.

    This will, of course, result in the states which are under water having considerably less taxpayers and more entitlement recipients and, in effect, becoming enclaves of third world existence within the US.

    I would like to see some border enforcement at the Tn border.

  6. anon Says:

    “They’re probably content to have the whole state become one big morass of businesses and companies that can’t leave.”

    Isn’t this New Jersey…?

  7. DirtCrashr Says:

    That’s why Reno is a huge hub of warehousing and shipping! Plus it’s all downhill to California from there.
    Anyhow nobody really wants to move way up to Nevada because of the sucky weather – and there’s no beach.
    Maybe Governor Meg Whitman can fix things…

  8. Lyle Says:

    Oh, but you’re “free” to go anywhere you want and do anything you want. It’s just that it’s gonna cost you, Suckuh.

    Socialists don’t acknowledge this “brain drain” effect. They want us to believe that if a tax is raised by x%, they’ll get x% extra revenue, ad infinitum. Eventually though, a socialist society has to have walls built around it to keep the slaves in. Nothing new here. It’s all happened before, over and over and over…

  9. Pete Says:

    Our company is “stuck” in CA. We can’t very well move the dry lake where we get our raw material. On the positive side, I live in the most gun-friendly and GOP-friendly counties, Kern.

    The ironic thing is Las Vegas is only 70 miles away as the crow flies. If Death Valley weren’t in the way, I’d live in NV and commute to work.

  10. Sebastiantheguywithnoblog Says:

    Isn’t this New Jersey…?

    I remember thinking after I typed that, “geeze I just described MD”, but I’ll defer to you in this case as I think Jersey might have us beat in that regard :).

  11. Will Says:

    “They want us to believe that if a tax is raised by x%, they’ll get x% extra revenue, ad infinitum.”

    Politicians never remember bad things. They did this in CA about 10 years ago, IIRC. Decided to up the income tax on millionaires. There were about 15,000 then. 5,000 moved out of state. Net loss compared to before the tax increase. Idiots can’t figure out that when you have that sort of money, it can be very easy to leave. What the idiots REALLY failed to consider is that they often own businesses that can be relocated with them. Double fail!
    When they passed the first EBR ban back in ’89, I saw a guy who moved his business to NV in response. I’m sure he wasn’t the only one.