| “Tech companies are leaving California in droves and bringing their workforces with them. The trend has picked up significantly over the last year, as work-from-home arrangements have become normalized. |
Oracle now joins Hewlett-Packard in leaving the state for Texas. According to Oracle, the decision will give their employees more flexibility on where to live. The San Francisco area is notorious for being prohibitively expensive; high tax rates and building restrictions created a situation in the city where someone could earn over $100,000 a year and live in his car.
Other tech executives, including Tesla CEO Elon Musk, say they are ditching California due to the state’s personal income tax rate–it has the highest in the nation. Musk is also moving his company to Texas, which has a zero percent income tax rate.
This trend is likely to only continue, especially since left-wingers in San Francisco appear to be doubling down on the types of oppressive policies that created the corporate exodus in the first place. For example, voters in the city recently passed a wealth tax beyond efforts for the state or federal level. It is described as an “overpaid executive tax” which would apply to those firms in the city which pay their officers more than 100 times the median worker salary,” Bright reports.
The impact of the switch of localities presents a mixed bag for conservatives in Texas; on the one hand, the state’s corporate tax revenues will surge, and new employees will pay taxes and spend money for normal expenditures. On the flip side, these Texan newbies are inherently liberal and unlikely to support traditional Texan conservative values.
Usually, Republicans can count on executives and high-paid employees to lean towards conservatism—at least where fiscal policies are concerned. But Big Tech owners and employees are an aberration to these long-standing truisms. They will vote and act if they are still in California: That is bad for Texas.
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