California is, or at least has been, a place of great wealth. A number of individuals have second luxury homes in California, million dollar mansions, and plenty of money. The economic crisis has definitely created an issue for California, including a $16 billion budget issue that the governor is proposing to fix with tax hikes and budget cuts. In terms of businesses it may mean office moves out of the state. Businesses that are struggling with the last few years’ economic troubles may not be able to afford to stay if the taxes go up.
Quite a few businesses have talked about business relocation out of the state for fear that they will have to close permanently if they do not move. The increased taxes are going to make it harder for companies to operate. Some companies will be able to remain, but they may also undergo office moves to smaller locations. Even billion dollar businesses like those in the movie industry have had bankruptcy issues because of the economy.
California may be pushing out companies and workers, but this will mean good things for the states that get these businesses. It will help improve other states’ economies as well as the employment industry. There is nothing set in stone yet about the tax increases or whether any businesses will actually relocate, but there is definite concern in the business sector. Those who are interested in which businesses may leave will have to keep updated on the happenings.
Jon Huser
