Steve Muehler (if I was Governor of California) - Plan 6: Corporate Tax Rate
First off, the California Corporate tax rate is one of the highest in the country at 8.84%, one of the highest in the country, but only results in $12 Billion in tax dollars to the State. Now, lets see just a few of who left recently, and to where, and why……
1. Nestle $335 Billion USD in Market Value, moved to Virginia (6% Corp Tax)
2. Toyota $205 Billion USD in Market Value, moved to Texas (0% Corp Tax)
3. Elon Musk $189 Billion USD in Market Value, moved to Texas (0% Corp Tax)
4. Oracle $170 Billion USD in Market Value, moved to Texas (0% Corp Tax)
5. Charles Schwab $107 Billion USD in Market Value, moved to Texas (0% Corp Tax)
6. Digital Realty Trust $41 Billion USD in Market Value, moved to Texas (0% Corp Tax)
7. McKesson $28 Billion USD in Market Value, moved to Texas (0% Corp Tax)
8. CBRE Group $23 Billion USD in Market Value, moved to Texas (0% Corp Tax)
9. Jacobs Engineering $13 Billion USD in Market Value, moved to Texas (0% Corp Tax)
10. Hewlett Packard $16 Billion USD in Market Value, moved to Texas (0% Corp Tax)
Now, there are hundreds (if not thousands) of companies that have recently left California due to high taxes and little in return for those taxes (beyond wasteful spending, like to consultants for housing the homeless). Just in the ten companies above, they combined equate to over $1.1 TRILLION USD in Market Capitalization and Jobs that literally picked up and left the State of California.
I searched the web, I cannot find any references to any large corporations moving to California.
Ever gotten a Credit Card in the mail from South Dakota? Why, because all of the Credit Card companies are based in of all places, South Dakota. Why? Well, one big reason is NO CORPORATE INCOME TAXES.
So, we have identified a problem, and let’s create a utopian state free of Personal Income Taxes, free of Corporate Income Taxes, free of an “out of control homelessness” problem, and one with legalized prostitution.
Now, we are going to have to “pay to play” here in California, and we will be getting to balancing the budget as this Blog Series moves along. But, if the Great State of California rids itself of Personal Income Taxes and Corporate Income Taxes, we will again become the “World’s Home of Business & Innovation”.
STATE COSTS: Eleven Billion in Lost Tax Revenue.
The Score so far on State Budget:
Plan One: Eliminate California State Income Tax
Resulted in $100 Billion Deficit
Plan Two: Decriminalize Prostitution in California
Resulted in $15 Billion in State Revenues
Still have a $85 Billion Deficit, but we have no State Income Taxes and we have Decriminalized Prostitution in California.
Plan Three: California Mortgage Tax
Resulted in $6.75 Billion in State Revenues
Still have a $78.25 Budget Deficit.
Plan Four: California Real Estate Transfer Tax
Resulted in $30 Billion in State Revenues
Still have a $48 Billion Budget Deficit.
Plan Five: Ending the California Homelessness Epidemic
Resulted in increased state spending, followed by State Budget Savings over many years. Total costs, I could not even come up with a guess, but would try to work within the current budget by utilizing current state land owned, governmental facilities, and current government programs. I am calling it “Even Steven”
Still have a $48 Billion Budget Deficit – but we have a No Income Tax State, Prostitution is Legal, the Wealthy are Paying their Fair Share, and the streets are less cluttered with homeless.
Plan Six: Ending the State Corporate Income Tax:
Resulted in a loss of approximately Eleven Billion USD in Annualized Tax Revenues.
$59 Billion USD Deficit
So, Plan Six, Drop the Corporate Tax and Become the Home of Corporations and Business
Additional Online Resources:
About Mr. Steve Muehler:
Personal Site: http://www.SteveMuehler.com
Personal Site: www.StevenMuehler.com
Investment Banking: www.PPMSecurities.com
Debt Markets: www.PPMDebt.com
Equity Markets: www.PPMEquity.com
Commercial Insurance: www.PPMCommercialInsurance.com
Bail Bonds / Immigration Bonds: www.MuleHairBail.com
EquityLock Commercial: www.EquityLockCommercial.com
EquityLock Residential: www.EquityLockResidential.com