CA to Toyota: is it something I said?

[DJofSD]

http://www.bloomberg.com/news/2014-0...-to-texas.html

Toyota Said to Plan to Move U.S. Sales Office to Texas

Toyota Motor Corp. (7203) is moving substantial parts of its U.S. headquarters in Torrance, California, to suburban Dallas as the world’s largest automaker seeks savings from its U.S. sales unit, people familiar with the matter said.

Employees will be informed of the plan today, said the people, who asked not to be identified disclosing private conversations. Steve Curtis, a Toyota spokesman, didn’t immediately return a call on the matter.

The surprise move is a blow to the Golden State, the biggest U.S. auto market and proponent of the strictest clean-air rules. Toyota’s Prius hybrid has been California’s top-selling model for the past two years and helped secure a leading 22 percent market share. It also represents a victory for Texas Governor Rick Perry, who’s made repeated visits to California to lure businesses to his state with promises of lower taxes and easier regulations.

[cj's dad]

Here in Md. the Baretta gun maker moved its HQ's out of state (Va.?) due to the high tax rate in the late great state of Maryland.

When queried about this, our POS Dem. govner stated that they are free to move wherever. And he wants to be Presdint. God help us !!!

These Dems just do not get it !

[TJDave]

Originally Posted by DJofSD

Toyota’s Prius hybrid has been California’s top-selling model for the past two years and helped secure a leading 22 percent market share

I would hope all California Prius owners would take the hint and move as well.

[JustRalph]

Great news....

[Robert Goren]

What the link didn't cover was what Texas had pay in order to get Toyota to move there. Anybody who thinks Toyota moved there because existing tax laws as implied in the link doesn't know how the game is played these day. I will cost Texas tax players plenty, you can bet on that.(but not over the internet if you live in Texas ) Whether the deal is worth it to Texas taxpayers or something that the Texas taxpayers will lose on or just something that will make Rick Perry look good in his 2016 presidential bid time will tell. Two things are for sure, Toyota got a lot better deal from Texas than CA was willing give and CA's "high taxes and tough environmental regulations" will not stop Toyota from selling as many cars as they can there in the future.

[Delta Cone]

Since Texas doesn't have a state income tax, I fail to see how this will cost Texas taxpayers money.

[Robert Goren]

Originally Posted by Delta Cone

Since Texas doesn't have a state income tax, I fail to see how this will cost Texas taxpayers money.

Texas has a sales tax.

[Delta Cone]

Yes, Texas has a sales tax. But how does moving a Toyota office to Texas cost a Texas taxpayer money?

[delayjf]

Nissan made a similar move location much of its HQ to Tenn.

[Robert Goren]

Originally Posted by Delta Cone

Yes, Texas has a sales tax. But how does moving a Toyota office to Texas cost a Texas taxpayer money?

It cost Texas something to get Toyota to move. The link did not say what, but if you better believe they got plenty. Time will tell exactly what they got. If you think they got nothing, you don't know the game is played these days. Nebraska, where I lived, would have offered several billion dollars in one form or another for something like Toyota's Sales office. Nebraska can't even come close to the deals that states like Texas offer. We don't have the tax base to raise the kind of money these companies demand. I won't even guess what Texas paid because I always so far on the low side on these deals that I look silly. The going rate 15 years ago for manufacturing was 100k a job. It has sky rocketed since then. What gets me is that so many people think the reason why these companies move is tax rates.

[Robert Goren]

Originally Posted by delayjf

Nissan made a similar move location much of its HQ to Tenn.

In 2005, Nissan which already had much of it operation in Tenn' got $197 million to consolidate it operations in Tenn. 1,300 non manufacturing jobs move to Tenn. $150,000 per job. That was 9 years ago. Does anyone think it has gotten cheaper in the last 9 years to a company to move.
http://articles.latimes.com/2005/dec...ess/fi-nissan8

[MONEY]

When Nissan Motor Co. (7201) moved its North American headquarters to lower-cost Tennessee in 2006,
only 42 percent of employees initially chose to relocate.

Here's the scary part for Texans.
These people will bring their husbands, wives & other family members with them.
Most will vote Democrat.

[DJofSD]

Originally Posted by MONEY

Most will vote Democrat.

Really?

Well, I guess that just goes to show there's always a dark cloud to every silver lining.

[AndyC]

Originally Posted by Robert Goren

It cost Texas something to get Toyota to move. The link did not say what, but if you better believe they got plenty. Time will tell exactly what they got. If you think they got nothing, you don't know the game is played these days. Nebraska, where I lived, would have offered several billion dollars in one form or another for something like Toyota's Sales office. Nebraska can't even come close to the deals that states like Texas offer. We don't have the tax base to raise the kind of money these companies demand. I won't even guess what Texas paid because I always so far on the low side on these deals that I look silly. The going rate 15 years ago for manufacturing was 100k a job. It has sky rocketed since then. What gets me is that so many people think the reason why these companies move is tax rates.

Generally incentives are given as reduced property tax bills or reduced regulatory fees or subsidies to help with construction of new plants. Overall it is money well spent in that the new economic activity will bring more added property and sales tax to the region than was spent luring the company.

[Saratoga_Mike]

Originally Posted by Robert Goren

What the link didn't cover was what Texas had pay in order to get Toyota to move there. Anybody who thinks Toyota moved there because existing tax laws as implied in the link doesn't know how the game is played these day. I will cost Texas tax players plenty, you can bet on that.(but not over the internet if you live in Texas ) Whether the deal is worth it to Texas taxpayers or something that the Texas taxpayers will lose on or just something that will make Rick Perry look good in his 2016 presidential bid time will tell. Two things are for sure, Toyota got a lot better deal from Texas than CA was willing give and CA's "high taxes and tough environmental regulations" will not stop Toyota from selling as many cars as they can there in the future.

Please post a link comparing and contrasting the CA and TX incentive packages that were offered to Toyota. Thx.