So long California.....hello Texas...Kubota

[JustRalph]

http://gov.texas.gov/news/press-release/20879#.VVT4hqkIl00.twitter

Another company bails

[horses4courses]

:sleeping:

[Greyfox]

:sleeping:

You're not losing your job obviously. Lots in California are.:ThmbDown:

[mostpost]

http://gov.texas.gov/news/press-release/20879#.VVT4hqkIl00.twitter

Another company bails
Some interesting facts from an article in the Washington Monthly.
http://www.washingtonmonthly.com/magazine/march_april_may_2014/features/oops_the_texas_miracle_that_is049289.php?page=all

The first question we need to ask is how much of Texas' job growth is due to the oil and gas boom in the state. It turns out quite a lot. Texas oil production increased by 126 percent just between 2010 and 2013. Only a few years ago, Texas’s oil production had dwindled to just 15 percent of U.S. output; by May of last year it had jumped to 34.5 percent, as new drilling methods opened up vast new plays in once-forgotten corners of south and west Texas with names like Eagle Ford, Spraberry Trend, and Wolfcamp. Thanks to the bonanza of drilling, Texas already produces more oil than Venezuela, and is headed to become the ninth-largest producer of oil in the world, ahead of Kuwait, Mexico, and Iraq.

Meanwhile, Texas accounts for 27 percent of U.S. natural gas production, which is more than the production of any nation except Russia.

The next big question is how much Texas’s growth in jobs just reflects its growth in population. For many decades, Texas has grown much faster in population than the U.S. as a whole, indeed about twice as fast since the 1990s. On its face, there is nothing particularly impressive about a rate of job formation that is just keeping pace with increases in population.

Conservatives like to point out how tax friendly Texas is. Turns out that is not necessarily true.

Texas does not have an income tax. But Texas has sales and property taxes that make its overall burden of taxation on low-wage families much heavier than the national average, while the state also taxes the middle class at rates as high or higher than in California. For instance, non-elderly Californians with family income in the middle 20 percent of the income distribution pay combined state and local taxes amounting to 8.2 percent of their income, according to the Institute on Taxation and Economic Policy; by contrast, their counterparts in Texas pay 8.6 percent.

some businesses manage to strike lucrative tax breaks in Texas. As part of an industrial policy that dares not speak its name, the state government, for example, maintains the Texas Enterprise Fund (known to some as a slush fund and to others as a “deal-closing” fund), which the governor uses to lure favored businesses with special subsidies and incentives.

But most Texas businesses, especially small ones, don’t get such treatment. Instead, they face total effective tax rates that are, by bottom-line measures, greater than those in even the People’s Republic of California. For example, according to a joint study by the accounting firm Ernst & Young and the Council on State Taxation, in fiscal year 2012 state and local business taxes in California came to 4.5 percent of private-sector gross state product. This compares with a 4.8 percent average for all fifty states—and a rate of 5.2 percent in Texas. With the exception of New York, every major state in the country, including New Jersey, Massachusetts, Pennsylvania, Ohio, Michigan, Indiana, Illinois, Wisconsin, and Minnesota, has a lower total effective business tax rate than Texas.

A study was conducted as to how much money businesses in California and Texas spend on services provided by their respective states.
California businesses pay $2.30 in taxes for every dollar they get in benefits, while Texas businesses pay $5. By this measure, Texas is the ninth-worst state in the country in the cost/benefit ratio it offers businesses on their taxes. Assuming that 50 percent of education spending benefits business, California businesses pay $1 in taxes for every dollar they get in benefits, while Texas business pay $1.50.

The business case for Texas does not speak for itself. It may be a great place to be a big oil or petrochemical company, or a politically favored large corporation able to wring out tax concessions. Its state laws are also hostile to unions, and its wage levels are generally lower than in much of the rest of the country. But for the vast majority of businesses, which are small and not politically connected, Texas doesn’t offer any tax advantages and is in many ways a harder place to do business. This is consistent with Census Bureau data showing that a smaller share of people in Texas own their own business than in all but four other states.

More to follow.

[JustRalph]

Keep trying to shoot holes in the States attitude toward business. Texas will just keep stealing jobs away.


The State is thriving ......responsible for over 30 percent of new jobs in the country.

As NJ likes to call it......a veritable Shangri la :lol:

Detroits trying to import Syrians...... :lol:

[Clocker]

More to follow.

No doubt reams of additional information showing that Kubota screwed up big time in moving from the business utopia of California because they believed the lies of those evil con men that run Texas. If only the people that run Kubota had the benefit of all of this insider information before they got taken in by the swindlers in Austin, they could have made an intelligent and informed decision.

[JustRalph]

No doubt reams of additional information showing that Kubota screwed up big time in moving from the business utopia of California because they believed the lies of those evil con men that run Texas. If only the people that run Kubota had the benefit of all of this insider information before they got taken in by the swindlers in Austin, they could have made an intelligent and informed decision.

Yep......and Toyota and State Farm must be fools too

[Clocker]

Yep......and Toyota and State Farm must be fools too

I did some consulting work for a Texas telecom company about 10 years ago. This kind of growth was obvious even back then. It was a no-brainer. If I had any real money back then, I would have invested in Texas real estate, preferably around Austin.

You can't compare one little tax number here with another little tax number there and plug them into a formula. You have to look at the big picture of policy and attitude. Night and day don't even begin to describe the difference between the pro-business attitudes, or lack thereof, in Texas and California.

[Robert Goren]

Texas continues to steal businesses from other states, but has a real problem when it comes to getting people to start their businesses in Texas. Silicon Valley is located in California for a reason. For all stealing of business from other states, Texas and other Southern states still far lag behind the Northeast in economic activity. A bad winter in the Northeast effects the national GDP to the point, it either so negative or close to it for the first quarter. To put in horse racing terms. Texas is Lone Star, NY is Belmont, and California is Santa Anita.
A good question to ask the governor of Texas would be, in spite of all your efforts to lure businesses to your state with favorable tax breaks, how many have you tried to lure that did not come because of Texas's far right wing social laws?

[JustRalph]

Texas continues to steal businesses from other states, but has a real problem when it comes to getting people to start their businesses in Texas. Silicon Valley is located in California for a reason. For all stealing of business from other states, Texas and other Southern states still far lag behind the Northeast in economic activity. A bad winter in the Northeast effects the national GDP to the point, it either so negative or close to it for the first quarter. To put in horse racing terms. Texas is Lone Star, NY is Belmont, and California is Santa Anita.
A good question to ask the governor of Texas would be, in spite of all your efforts to lure businesses to your state with favorable tax breaks, how many have you tried to lure that did not come because of Texas's far right wing social laws?

Complete crap........

Texas is number 2 as of 2012......which doesn't include the huge growth in Texas in the last two years

http://en.m.wikipedia.org/wiki/Comparison_between_U.S._states_and_countries_by_GD P_(nominal)

More
http://www.forbes.com/sites/realspin/2013/07/03/texas-v-california-the-real-facts-behind-the-lone-star-states-miracle/

[TJDave]

Kubota?

I wouldn't think of having that in my barn.

Sacrilegious.

[Robert Goren]

Complete crap........

Texas is number 2 as of 2012......which doesn't include the huge growth in Texas in the last two years

http://en.m.wikipedia.org/wiki/Comparison_between_U.S._states_and_countries_by_GD P_(nominal)

More
http://www.forbes.com/sites/realspin/2013/07/03/texas-v-california-the-real-facts-behind-the-lone-star-states-miracle/If Texas is such a great place to start a company , why didn't Kubota or any of the other companies that move there start out there?

[Tom]

Probably because they started in California before the democrat-devouring of the state.

The fact that people and companies already in existence are moving there speaks volumes - where they are is no longer a desirable place to be......too BLUE! :lol::lol:

[AndyC]

Some interesting facts from an article in the Washington Monthly.
http://www.washingtonmonthly.com/magazine/march_april_may_2014/features/oops_the_texas_miracle_that_is049289.php?page=all

The first question we need to ask is how much of Texas' job growth is due to the oil and gas boom in the state. It turns out quite a lot. Texas oil production increased by 126 percent just between 2010 and 2013. Only a few years ago, Texas’s oil production had dwindled to just 15 percent of U.S. output; by May of last year it had jumped to 34.5 percent, as new drilling methods opened up vast new plays in once-forgotten corners of south and west Texas with names like Eagle Ford, Spraberry Trend, and Wolfcamp. Thanks to the bonanza of drilling, Texas already produces more oil than Venezuela, and is headed to become the ninth-largest producer of oil in the world, ahead of Kuwait, Mexico, and Iraq.

Meanwhile, Texas accounts for 27 percent of U.S. natural gas production, which is more than the production of any nation except Russia.

The next big question is how much Texas’s growth in jobs just reflects its growth in population. For many decades, Texas has grown much faster in population than the U.S. as a whole, indeed about twice as fast since the 1990s. On its face, there is nothing particularly impressive about a rate of job formation that is just keeping pace with increases in population.

Conservatives like to point out how tax friendly Texas is. Turns out that is not necessarily true.

Texas does not have an income tax. But Texas has sales and property taxes that make its overall burden of taxation on low-wage families much heavier than the national average, while the state also taxes the middle class at rates as high or higher than in California. For instance, non-elderly Californians with family income in the middle 20 percent of the income distribution pay combined state and local taxes amounting to 8.2 percent of their income, according to the Institute on Taxation and Economic Policy; by contrast, their counterparts in Texas pay 8.6 percent.

some businesses manage to strike lucrative tax breaks in Texas. As part of an industrial policy that dares not speak its name, the state government, for example, maintains the Texas Enterprise Fund (known to some as a slush fund and to others as a “deal-closing” fund), which the governor uses to lure favored businesses with special subsidies and incentives.

But most Texas businesses, especially small ones, don’t get such treatment. Instead, they face total effective tax rates that are, by bottom-line measures, greater than those in even the People’s Republic of California. For example, according to a joint study by the accounting firm Ernst & Young and the Council on State Taxation, in fiscal year 2012 state and local business taxes in California came to 4.5 percent of private-sector gross state product. This compares with a 4.8 percent average for all fifty states—and a rate of 5.2 percent in Texas. With the exception of New York, every major state in the country, including New Jersey, Massachusetts, Pennsylvania, Ohio, Michigan, Indiana, Illinois, Wisconsin, and Minnesota, has a lower total effective business tax rate than Texas.

A study was conducted as to how much money businesses in California and Texas spend on services provided by their respective states.
California businesses pay $2.30 in taxes for every dollar they get in benefits, while Texas businesses pay $5. By this measure, Texas is the ninth-worst state in the country in the cost/benefit ratio it offers businesses on their taxes. Assuming that 50 percent of education spending benefits business, California businesses pay $1 in taxes for every dollar they get in benefits, while Texas business pay $1.50.

The business case for Texas does not speak for itself. It may be a great place to be a big oil or petrochemical company, or a politically favored large corporation able to wring out tax concessions. Its state laws are also hostile to unions, and its wage levels are generally lower than in much of the rest of the country. But for the vast majority of businesses, which are small and not politically connected, Texas doesn’t offer any tax advantages and is in many ways a harder place to do business. This is consistent with Census Bureau data showing that a smaller share of people in Texas own their own business than in all but four other states.

More to follow.

Wow. That is a tremendous amount of spin but putting lipstick on that pig won't help.

Texas is simply a far more affordable place to live than California. Houses cost 1/2 as much, no income tax, gas taxes are $.27/gal less, etc., etc. More to follow.

Texas definitely has a higher property tax rate than California but given that property costs half as much the overall property tax burden is actually less.

Do you think the California carbon tax should be in the equation?

[Inner Dirt]

Wow. That is a tremendous amount of spin but putting lipstick on that pig won't help.

Texas is simply a far more affordable place to live than California. Houses cost 1/2 as much, no income tax, gas taxes are $.27/gal less, etc., etc. More to follow.

Texas definitely has a higher property tax rate than California but given that property costs half as much the overall property tax burden is actually less.

Do you think the California carbon tax should be in the equation?

I will give you more from someone who used to live and own a business there.

Utilities prices are the highest in the land, don't know if it is flat out price gouging or because of social programs, most rates are tiered, the more you use the more you pay per KWH plus peak demand charges. If you have a manufacturing business you get hosed bad. Don't give me the green power spiel either the hydro electric power from the Hoover Dam that cost $.048 per KWH in Arizona went for up to 8 times that in California.

Water for a residential user is another big rip off, even with high food prices a garden with a good yield will not even pay for the extra water used.

Regulations are a major joke, most places it is no longer legal to wash your own car unless you vacuum up and reuse the water. That one put a lot of mobile car detailers out of business.

If you are a business mop water is considered hazardous waste and can cost up to $8 a gallon to dispose of it.

Usage fees for things that used to be paid by tax dollars are quite high. Many states have free landfills for small users, not California. Fees to dispose of tires, car batteries, used oil etc causes lots of illegal dumping.

California does have the highest percentage of people on welfare and their anti business policies will make those numbers continue to grow.

[Clocker]

Water for a residential user is another big rip off, even with high food prices a garden with a good yield will not even pay for the extra water used.



Water rates are no longer a problem, since there isn't any water.

Unless you are a delta smelt. :p

I wonder if the fish will be able to migrate on the high speed rail? :rolleyes:

[dartman51]

Wow. That is a tremendous amount of spin but putting lipstick on that pig won't help.

Texas is simply a far more affordable place to live than California. Houses cost 1/2 as much, no income tax, gas taxes are $.27/gal less, etc., etc. More to follow.

Texas definitely has a higher property tax rate than California but given that property costs half as much the overall property tax burden is actually less.

Do you think the California carbon tax should be in the equation?

"Its state laws are also hostile to unions," That line alone, explains MoPo's disdain for Texas and the reason for the spin. Oh, and not to mention that it is a pretty RED state. :D :ThmbUp:

[Clocker]

" Its state laws are also hostile to unions " That line alone, explains MoPo's disdain for Texas and the reason for the spin.

For those that don't speak Liberalese, that means that Texas is a right-to-work state.

[AndyC]

If Texas is such a great place to start a company , why didn't Kubota or any of the other companies that move there start out there?

A logical question. I don't think too many manufacturing companies are/were looking to California today or over the past several years as a place to open a factory. Kubota opened their CA factory back in 1972, back when businesses could thrive under CA laws.

[MONEY]

For those that don't speak Liberalese, that means that Texas is a right-to-work state.

In Texas right to win means that corporations can get away with treating
their employees like crap.

One example is department stores changing locations. When they change to
another spot even inside the same mall, they layoff most of the employees,
and tell them that they have to apply for jobs as new job seekers & that if
they get rehired they will begin at the bottom pay level.

Another is company truck drivers. Drivers are issued trucks that don't meet
DOT specifications and if they complain they get told to go work somewhere
else. If they get summonses for driving the bad trucks they get fired because they have summonses on their licenses.

I know that some unions wield too much power, but in Texas right to work is usually not good for employees.

[Tom]

America lives in Texas.

[fast4522]

In Texas right to win means that corporations can get away with treating
their employees like crap.

One example is department stores changing locations. When they change to
another spot even inside the same mall, they layoff most of the employees,
and tell them that they have to apply for jobs as new job seekers & that if
they get rehired they will begin at the bottom pay level.

Another is company truck drivers. Drivers are issued trucks that don't meet
DOT specifications and if they complain they get told to go work somewhere
else. If they get summonses for driving the bad trucks they get fired because they have summonses on their licenses.

I know that some unions wield too much power, but in Texas right to work is usually not good for employees.

Your detail in your post merits questions.

Not just Texas, but all 50 states department stores have nice looking people who are helpful but none of them make money to speak of right?

Even in a downturn, if you can drive a truck you can always find a job right?

Your better truck drivers always end up with the better trucks right?

Just about all company's expect drivers to inspect and maintain the truck that they drive, if a light is out it is on the driver to swap it out prior to the route. There are many lights professional drivers change during the year to not get a ding by DOT, often the reason for being stopped during a route leading to other log errors not maintained. No one said it was easy, but it is what it is right? Not you personally but some people are better off staying home with the television right?

[MONEY]

Your detail in your post merits questions.

Not just Texas, but all 50 states department stores have nice looking people who are helpful but none of them make money to speak of right?

Even in a downturn, if you can drive a truck you can always find a job right?

Your better truck drivers always end up with the better trucks right?

Just about all company's expect drivers to inspect and maintain the truck that they drive, if a light is out it is on the driver to swap it out prior to the route. There are many lights professional drivers change during the year to not get a ding by DOT, often the reason for being stopped during a route leading to other log errors not maintained. No one said it was easy, but it is what it is right? Not you personally but some people are better off staying home with the television right?

Your 1st statement about dept. store workers is true.
But I have never seen the practice of keeping employees at minimum wage through transfers
& re-locations until I moved to Texas. I have always believed that if you want to make more money,
that you should make yourself more valuable to prospective employers by getting a skill or
earning a degree, but not everyone is capable of achieving high levels of knowledge.

For those people, they have to do the best that they can with what they have. So if working
at a dept. store or flipping burgers is the best that you can do and you attain the necessary
experience & ability to earn the higher pay scale that you employer offers, that employer should
pay you the higher pay instead of transferring you to a new location in order to pay you less.

As for truck drivers and I know many of them. They are assigned to whatever truck
is operational. They are required to do pre-trip inspections and report all problems.
Small problems like missing or damaged lights, they can fix themselves.

When there are big problems like the air brakes on the trailer leaking, cracked windshields,
seat belts not working properly, etc. the bosses expect you to use the truck as is & they
will make repairs at their convenience.
Also police do not need probable cause or even reasonable suspicion to pull over big rigs,
they can pull them over whenever they want to make a safety inspection.

Log book errors are mostly a thing of the past since most companies have switched
to electronic logs that are easy to maintain.

Lastly a healthy, capable person that wants to work is not better off sitting at home
watching television.

Unions may not be the answer but employers power in Texas, especially in the trucking business
need to be reined in a little.