California has long been the home for entrepreneurs seeking to launch a startup or LLC, but recent findings suggest the Golden state may be losing its entrepreneurial edge to its lead economic rival Texas.
The most recent unemployment figures found significant job losses in California, as well as New York, New Jersey and Massachusetts - states that are usually torchbearers of economic vitality. Meanwhile, Texas gained 153,000 jobs - more than twice the amount of jobs California lost (63,500).
Many business leaders and analysts argue high taxes and regulations encourage businesses to move to more economically favorable climates. "Corporate taxes, fees to do business - they all add up," Robert J. Lowe, a real estate developer, told the Los Angeles Times. "It encourages companies to relocate to other locations where taxes are lower."
To substantiate Lowe's argument, the Tax Foundation's recent index of state tax climates ranked California and New York - states with some of the highest job losses - dead last at No. 49 and 50, respectively. The rankings, along with recent unemployment indexes, suggest a substantial correlation between tax or regulatory schemes and job losses.
Tags : ca, ny, operations, small business management, tx
Posted: Nov 2nd, 2010