Californians Are Flocking to Texas, But, Hard as Rick Perry May Try, Their Businesses Aren't

Categories: Politics

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Governor Rick Perry is in California this week as part of his campaign to lure businesses to Texas, attempting to finish in person what his radio ads started.

In an interview with the San Jose Mercury News Perry said that California Governor Jerry Brown's comments that Perry's radio ad was "a fart" gave the campaign a lot of publicity. Which is fair since it's not every day an elected official publicly references farts. Perry, who is nothing if not sophisticated, proceeded to make reference to Texas' collective ass:

Perry did not disclose the names of the businesses he was meeting with and will not hold public events, but he was more than eager to pump up what he described as the Lone Star State's best qualities for business: low taxes, few regulations and lenient labor laws, which he said California lacks.

"Twelve years ago, California wasn't looking over its shoulder," he said. "They're not looking over their shoulder now -- they're looking at our backside."

But for all its business-friendliness, Texas is syphoning more lower-income households from the Golden State than it is jobs. According to the chief economist for the real estate site Trulia, typically California loses a net total of 9000 jobs each year. That isn't much of a dent in a state economy of 18 million jobs.

But in 2011, 120 people left California for every 100 that moved there, and those people were largely from households making less than $60,000 a year. Texas is among the five states with the biggest influx of people from California, though that might change after they see Perry in person.


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25 comments
ejpaddler
ejpaddler

As an ex california resident , New Mexican, and now Texan there is more to life than jobs and lower housing prices. Perry is an Ass, will always be an Ass and the recent run at national office showed his total lack of understand OUTSIDE the state of Texas. There will be some businesses that love the idea of lowering some of their bottom line items, but their employees will not so readily jump ship to live here.  The state may be pro business, but in many real world ways is anti  worker, anti human rights, and anti environment. The two states have much in common, but have too much difference in basic freedom that few will leave.   Perry has futher removed himself from national office with this move.  Boeing failed to move here. Other large companies can and will find other parts of the country a better fit.  It's probably time for the FBI to set up an office in dallas city hall. It'd save them time to investigate the corruption that is a fine example of why business won't relocate here. It woudl be very interesting to see how many of those that move here from Califonia, already have family ties to Texas, which can be much stronger than economic ties and a primary reason to move.

NOakCliff
NOakCliff

I wonder if Rick happened to mention his hostile attitude towards, and the current state of, Texas public education?

whocareswhatithink
whocareswhatithink

"though that might change after they see Perry in person."......Oh no, what a terrible man, trying to bring business to Texas...shame on him...

Damned if you do and damned if you dont....

CheeryBitch
CheeryBitch

My spouse frequently flies back and forth from here to California. So, I know of at least one major company moving operations to Texas. The employees, however, are not. Most of the hiring will be local as there is a large pool of highly experienced personnel to draw from. It's not that they don't want their staff, the staff don't want Texas. (And these are six-figure paying jobs.)

MikeWestEast
MikeWestEast

Only at the Dallas Observer would households making less than $60,000 be considered the trash.

philcoop8192
philcoop8192

A family can pack up and move in a matter of a few weeks.  It takes businesses a bit longer.  California's Governor Jerry Brown is living in a dream world when he says businesses aren't going to leave the state.  They already are, as Chevron is shutting down its headquarters there and moving to Texas.  Lawrence Livermore Laboratory is moving jobs to Los Alamos, New Mexico and Oak Ridge, Tennessee, and Adobe Systems is moving jobs to Utah.  These announcements came in November 2012, just days after Obama got re-elected and taxes were hugely increased in California.  If companies already have a presence in Texas, it's relatively easy to move job functions here from elsewhere.  More relocation announcements to come ...

whiteguiltlib
whiteguiltlib

The Observer's naive white-guilt libtard "progressive advocacy journalist propagandists" should be rejoicing about this!

Reading between the lines, it is obvious (to anyone but a naive idealistic white-guilt-ridden Observer libtard) that "more lower-income households" means lots of those vibrant diverse illegal alien Latinos that the white-guilters at the Observer pretend to love so much!

Why aren't you naive Observer libtards thanking Rick Perry? He is helping to make your sheltered naive white-guilt "journalist" lives much more diverse!

whiteguiltlib
whiteguiltlib

I hate Rick Perry, but I hate the Observer's constant shit-stream of naive white-guilt libtard propaganda even more.

planecrazy
planecrazy

I'm done with the Observer.  You guys are just a dripping liberal, socialist, douchebaggery propoganda machine.  Just wishing that all you asswipes move to CA and become the LA Observer so you can start bitching about how the Democrats are fucking up your chi out there.  Counting the days to your demise.

bvckvs
bvckvs topcommenter

Republicans are great at drawing deadbeats; not so great at responsibly managing a business.

ChrisYu
ChrisYu

the 'move it to TX' proposal was thrown out there what, a week ago? give it at least two weeks before you declare it a failure. I like to make fun of the guv as much as anyone else, but i'm all on board with Mr. Perry here, bring those jobs to Texas, business runs better here, then we can save the country. betcha there's a hairspray company giving it serious consideration right now.

Montemalone
Montemalone topcommenter

In other words, more trash coming to Texas, while the creme floats to the coast.

Rooster0620
Rooster0620

While I will be the first to admit Rick Perry is a Class A clown, I still don't know why the D.O. writes about business related topics, when its become fairly obvious no one there knows beans about business or economics.

To say the statistic thrown out here about the "net" number of CA jobs lost doesn't show squat about how many jobs Texas does/doesn't take from CA would quite frankly be complimentary.

Having recently moved some of our CA operations to Texas, I will say the Texas regulatory/tax environment isn't even in the same ballpark as the circus that is CA. The employees we hire here aren't any dumber than the ones we hire in CA, and they don't cost near as much. Facility rental here isn't near what it is in CA, since the real estate isn't as expensive. I could go on and on.

Perhaps that may be something the Observer may consider looking into before making a post so obviously ill-researched as the one above.

It would require whoever researched it to have some sort of business acumen though, and therein lies the rub.

bleeks23
bleeks23

@ejpaddler

soooooo dead on with this comment. i work at the airport and see cali's coming here in droves. texas is anti worker, and ridiculous politics. i can't wait to move back to cali, but aging parents deserve my time.

Dallasphotog
Dallasphotog

You wouldn't have to worry about companies bringing their California employees here to Texas.  Most would be fired or laid off, set up shop here, and offer half what they were paying in California.

j.walter.miller
j.walter.miller

@NOakCliff The teachers that have no place teaching resent being held accountable for student outcomes.  

scottindallas
scottindallas topcommenter

@philcoop8192 Dude, aside from your Chevron and Adobe examples, every other one is connected directly to Federal programs, and more directly, to Federal Gov't cuts.  You DO understand what and who runs those facilities right?  It ain't the "free market."

ruddski
ruddski

@bvckvs 

The influx of fast-food workers is seen as a threat by some Texans

scottindallas
scottindallas topcommenter

@Rooster0620 but you can't defend the policies you support.  I've run my own small business for 25 years, yet employees like yourself stupidly support policies that have nothing to do with small business.   By the way, one reason CA real estate is more expensive than TX RE is taxes.  Our ad valorem rates are higher, which depreciates the property.  As a small business, I'd rather pay income taxes than property and sales taxes--income taxes vary with the success of the business whereas property taxes only increase, regardless of the business cycle, and often increase in decline--doubling the burden.  


Your policies ignore that there's a difference between net and gross profits--something an employee would never experience.  Collect your checks, but you need to explore your ignorance and the foolish policies that are not rooted in reality. 

Rooster0620
Rooster0620

@scottindallas @Rooster0620

Ok..I'll bite...

1) Who said I was an employee and not an owner?

2) Since I run this company, I have probably forgotten more about gross and net profits than you have learned so far. While we're at it, we can add cash flow and EBITDA to the list since that's what the banks who loan me money care about.

3) These are not "my" policies. I couldn't give a rat's behind about Rick Perry, or his policies.

4) You can talk about "reasons" why it's more expensive to do business in CA until you're blue in the face, but the bottom line is its WAY more expensive to have a business there than here, which is why we shuttered our CA facility. Even a "small business guru" like yourself can understand more money in your pocket at the end of the year?

scottindallas
scottindallas topcommenter

@Rooster0620 I meant to say "Not partisan" and If I'm mistaken, please tell me how?  I suspect that I'm not far off, perhaps the code needs to be cleaned up to get it back to what Kennedy had.  

scottindallas
scottindallas topcommenter

@Rooster0620 You'll do business where you have customers.  Your cash flow and your gross profits are much more closely related to each other than net profits and cash flow.  You must know that your gross profits are far more important.  


You should realize the policy I'm getting at.  The biggest challenge is to appropriately scale the corporate income taxes, but at some point, a fair net profit is appropriate, and surpluses have many places to go.  That world created pensions, vast R&D on a private scale that hasn't been matched since, and a capital production juggernaut that seemed unmatchable.  Until we killed the golden goose.  


You must realize that higher cap gains would only lower your tax exposure, while flippers, speculators and the vultures of the world would be discouraged.  How is that bad?  Should our tax policy encourage cap intensive production, or get rich quick schemes?  Mitt Romneys or manufacturing?  Again, we have all the customers, these policies would only encourage growth, private domestic investment.  I'm not concerned about effective rates, but higher nominal rates would be a good thing.  Further, the frivolous goal of making the effective and nominal rates equalize only helps those same cap lite producers.  

I'm making a partisan point, I'm not partisan.  I've not supported gun control, as I feel the same about drugs, guns, abortion, and prostitution.  But, there are utilities, which aren't like free market players.  Nor are professions the same.  But you're advocating policies by people who elide these markets, as well as the difference between nominal and effective rates, as well as gross and net profits.  They're obviously sophists and preying on the ignorance of the masses.  Yet suddenly these whores look like earnest economists?  Why would you trust a thing they say?

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