California, We Are Coming For You

According to a new report, the Golden Coast doesn’t have much on the Peach State when it comes to attracting business. Spectrum Location Solutions found that there have been up to 10,000 business disinvestments from the state of California since 2008 and Georgia has absorbed a good chunk of them. Georgia was ranked 8th in a list of states that benefitted the most from companies fleeing California and the Atlanta was ranked 9th in a list of cities that came out ahead.

Similar to Georgia, California offers business incentives including tax credits for the film industry. Unlike Georgia though, California is considering tax hikes on fuel, vehicles, business properties. It already has an 8.84 percent corporate tax rate, which is a bit higher than Georgia’s 6 percent rate.

We’ve been sniping at California’s film industry for several years now, placing third in the country for the number of feature films in 2015. California increased its film tax credit in 2014 in response to competition from Georgia, but other benefits, such as the lack of unionized labor, keep drawing productions to the Peach State.

Governor Deal and the state legislature have made it abundantly clear that companies have little to fear from regulators or tax hikes down south. While the effect that attracting corporations has on the state’s overall economic well-being is unclear, it is undeniable that Georgia is one of the top states in the country for doing business.

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Benevolus
Benevolus

Just FWIW, in a place like California, usually taxes go towards trying to make life better for citizens. Food safety, work safety, public spaces, art, culture, environmental protections, etc., make a better place to live. Some companies care less about those sort of things than others so they move. The point being- just being “good for business” is not the goal. It’s just a means to the goal. More jobs should equal more taxes which should equal enhanced living conditions. But if you give up the taxes in a deal you don’t get to do the stuff that makes it… Read more »

Raleigh
Raleigh

“More jobs should equal more taxes which should equal enhanced living conditions.”

I think if that were true New York and New Jersey would be utopia with everyone wanting to move there but as the late Lewis Grizzard wrote, “Nobody is going into an Atlanta bar tonight celebrating they have just been transferred to New Jersey.”

gcp
gcp

In addition to the 8.84 corporate tax the highest marginal state income tax rate in California is 13.3% so there is not much incentive for any productive person to stay.

Jack Fitz
Jack Fitz

And yet, with 772,55 households with over $1M in invest-able assets, California still ranks #1 in nation for the most millionaires. It seems similar to B’s analysis that people chose to live in places not based on raw tax incentives. Businesses on the other hand, not so much.

gcp
gcp

The very rich don’t care about the high individual rate so they stay. Its more the upper middle class that get hurt. Additionally much of the net worth is in overvalued real estate. A lot of folks flee California once they retire to escape the high taxes.

Andrew C. Pope
Andrew C. Pope

This is an incredibly valid point.

xdog
xdog

It’s not overvalued if you can sell it or lease it at that valuation.

gcp
gcp

Okay, maybe some folks would say ” inflated” but to me it’s overvalued.

Benevolus
Benevolus

It’s all very free-market in the end. Just like some people can’t afford to live in Buckhead, some aren’t going to be able to live in California. It’s a very naturally desirable place to live so it costs a lot to buy real estate and everything else flows from there. But those who can stay enjoy a very pleasant environment (for the most part). And obviously a state can tax themselves out of desirability, but I doubt they are there yet. The thing is, if you are going to have high taxes you better deliver something for it.

Andrew C. Pope
Andrew C. Pope

Georgia does not have In-n-Out so any analysis saying its “better” is clearly erroneous. Non-sarcastically, I’ve lived in both California and Georgia, while California is more expensive in terms of taxes, cost of living, etc., the quality of life is way, way better.

The Eiger
The Eiger

So…… why is that you have decided to make Georgia your home. You should be able to pass the bar in California right?

Andrew C. Pope
Andrew C. Pope

I was born here, raised here, my family still lives here, Georgia football games are easier to get to, and I’ve got a good job that pays me enough to afford plane tickets out to California when I feel like skiing, surfing, camping, sailing, etc.

The Eiger
The Eiger

Fair enough. My point is that you made the decision to live here instead there. Georgia isn’t so bad as to make you want to leave.

October in Georgia at a UGA football game is enough to make me stay and if you are flying all the way to California to go camping you are missing out on some of the best places in North Georgia.

Andrew C. Pope
Andrew C. Pope

I was merely saying that quality of life is better in California than Georgia. I wasn’t trying to say quality of life in Georgia is bad. I love it here and I’d still love it here even if I didn’t have my family and the Dawgs. Camping in North Georgia is great, camping out on Cumberland Island is great. For me, though, nothing beats Yosemite. As to Noway’s inquiry… I like the fact that you’re a drive away from any number of outstanding beaches and that the state has done a great job in maintaining public beach access. I like… Read more »

Noway2016
Noway2016

Hell, the no skeeters might be enough to make me move there!

xdog
xdog

In-n-Out ranks pretty low on my corporate burger list. Give me a Whata any day.

Dave Bearse
Dave Bearse

I’ second ACP. I visit In-n-Out every third day I’m in in So Cal.

Noway2016
Noway2016

Don’t know if In-n-Out Burger is similiar to Whattaburger, I’ll be having Whattaburger with green chili in ABQ in September!

Noway2016
Noway2016

What makes the quality of life better?

zedsmith
zedsmith

Crow about georgia’s right to work laws, then link to a deadline article talking about how much the IATSE local has grown.

The good jobs on good sets in Georgia are all union.