Truth Before Dishonor

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Posts Tagged ‘Texas’

The Democrats’ economic and taxation policies at work in Illinois

Posted by Dana Pico on 2012/12/24

Remember how our friends on the left were so appalled that the Michigan state legislature passed a right-to-work law? How about in just-across-the-lake Illinois, that liberal bastion and home of President Barack Hussein Obama?

Unions blast state on plans for underfunded pensions

By Rick Pearson, Chicago Tribune | 1:26 p.m. CST, December 19, 2012

A coalition of public employee unions issued a report today blasting state legislation to address their vastly underfunded pension systems and offering instead to make increased worker contributions if lawmakers raised $2 billion by ending tax benefits to corporations and imposing new taxes.

Appearing at the James R. Thompson Center, members of the We Are One coalition said plans backed by Gov. Pat Quinn and another proposal supported by a bipartisan group of lawmakers would violate the state constitution by reducing pension benefits already guaranteed to workers. They predicted such a change would be overturned by the courts.

Moreover, the group said the plan Quinn was advocating would “cause deep harm to working and retired state employees and teachers, negatively impact the Illinois economy and yet still not solve the state’s primary pension problem — the failure to regularly fund its annual required contributions.”

The unions said their offer to require state workers and teachers to pay 2 percent more toward their retirement was conditional upon the state making an “ironclad guarantee” in state law that government fund its pension obligations.

To help fund those obligations, the unions proposed eliminating several corporate tax benefits as well as imposing new taxes on auto trade-ins, satellite TV service and downloaded digital entertainment. The new funds also could be used to help offset cuts in other public social services, the group said.

More at the link.

Illinois is an already-highly-taxed state, with significant companies considering leaving the state due to the already-passed increases in corporate taxes. Here’s another story:

Illinois Among Nation’s Worst State Business Climates, According To CEO Survey

Illinois has been struggling to keep big companies in the state since Illinois Governor Pat Quinn approved an income tax increase in January. Quinn has been widely criticized for the move, and a new survey ranking Illinois among the worst business climates in the U.S. will likely provide fodder to the naysayers.

According to a survey released Monday, California, New York and Illinois have the “least favorable business climates” to corporate executives in the U.S. Nearly 25 percent of the 322 corporate executives surveyed said Illinois was unfavorable due to high taxes and “anti-business climate/regulation.”

“With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” Development Counsellors International (DCI) President Andrew T. Levine said in a statement. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.”

Texas, North Carolina and South Carolina had the most favorable business climates, according to the survey.

More at the link. But Illinois’ business climate is so bad that the family of an Illinois state senator is moving their business out-of-state!

Mike Frerichs is running to keep his seat in the 52nd District Senate seat from Champaign County. He clams he’s all about small businesses in Illinois. Yet, things have gotten so bad during histerm in office that his own family is moving their business out of Illinois and into Indiana.

On the main page of his Senate website, Frerichs is all proud of the “job-creation program” he had a hand in but the best “job-creation program” would be to make Illinois more business friendly and tax-hike-Mike has no desire to do that at all.

The business climate in Illinois under Frerichs and Democrat Governor Pat Quinn is so bad that even Frerichs’ own family is moving its business out of the state.

Recently The Champaign News-Gazette reported that Frerichs cousin moved his trucking business from Illinois over to Covington, Indiana.

Frerichs’ cousin admitted that it is all true and that Illinois’ horrid business climate drove him out of the state.

Readers will not be surprised to learn that Mike Frerichs is a Democrat.

Illinois is doing just what our friends on the left say government should be doing as far as taxes and the economy are concerned, and the result is a loss of businesses, a state government which cannot fund its pension system, and calls for even higher taxes. Simply put, the Democrats’ economic policies are being put into practice, and they are not working!
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The section above the line was published on THE FIRST STREET JOURNAL on December 21st. Today, I found this on Patterico’s Pontifications:

Chevron Moves Hundreds of Employees to Texas from California

Patterico @ 10:32 pm

Interesting:

Chevron Corp. will move as many as 800 jobs to Houston from its California headquarters to support its exploration and production operations, the company told employees Thursday.

The oil giant will maintain its corporate headquarters in San Ramon – just east of San Francisco – where 6,500 employees work.

In an email to its workers, Chevron said jobs moving to Houston include employees in support groups involved with technology, procurement and business development.

“Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company email said.

I wonder how many businesses are relocating employees from Texas to California. Somehow, I suspect not many.

An interesting move. Chevron is moving support jobs to Houston, which will improve efficiency and (presumably) lower costs. “Moves in these groups are expected to take place over the next two years to support our growing upstream business,” the company e-mail stated, and it makes sense that such jobs would be closer to the physical activity involved. The corporate leadership remains in California, so most of the top executives don’t have to move.

California and Illinois are both following the Democrats’ preferred model for government: unsupportably high government spending, and a high tax regime. Now the Pyrite State is losing another 800 good jobs. Those jobs might or might not have been moved anyway, even if California were governed better, but the anti-business attitude on the Left Coast couldn’t have helped swing the decision toward keeping the jobs in San Ramon.

Posted in economics, Oil | Tagged: , , , | 1 Comment »

Moving From California To Texas?

Posted by John Hitchcock on 2012/04/19

You’re not alone. For several years, California businesses have pulled up stakes and moved to Texas. Here are a couple quick videos featuring Andrew Puzder, CEO of CKE restaurants (that’s Carls Jr, and Hardees), a multi-billion-dollar business that moved from California to Texas, very briefly touching on some of the reason why.

As I said, the business exodus from California has been ongoing for several years. Here is a video from mid-October, 2010, noting that over 150 businesses had fled California up to that point in 2010 alone, and that it was a continuing occurrence and not the start of the flight.

A business that spent 42 years in Orange County, California, moved to Corpus Christi, Texas in 2011. The main reason cited? Taxes and fees.

The businessman’s Texas building has double the square footage at a quarter of the cost.
His corporate truck registration fee is 1/7 the cost it was in California.
His electric bill while running the air conditioning for a full month in Texas is less than 1/3 the average bill in California.
California charges sales tax on leased equipment, unlike most states. Every month of the lease, there’s another month of sales tax.
When California residents put a cap on property tax increases, California Government officials just switched to skyrocketing fees, such as Orange County’s sewer connection fee, which went from 50 a year to 800 a year, a 16-fold increase.
In the same time-period, his fee for a business license nearly doubled.

In other words, California made it far too expensive to remain. Do read the above-linked article.

The Orange County Register reported 69 businesses had moved all or part of their businesses out of California between January 1, 2011, and April 15, 2011, a rate exceeding it’s 2010 pace, according to a firm that had been tracking the exodus since 2009. The OC Register cites Joe Vranich, a relocation consultant, who gives a Top Ten list of reasons why businesses are fleeing California:

Why do these and the other companies move out of California? Vranich has updated his top 10 reasons that California companies call the moving van.

No. 10 is new: Energy costs soaring because of new laws and regulations. Commercial electrical rates are already 50% higher than the rest of the country, Vranich says, and Gov. Jerry Brown just signed a new law increasing the amount of power utilities must buy from renewable sources plus regulations for the California Global Warming Solutions Act will start soon.

The other reasons, Vranich says, are:
9. High and unfair tax treatment
8. Regulatory burden
7. Unfriendly legal environment for business
6. Most expensive place to do business
5. Provable savings elsewhere
4. Public policies and taxes create unfriendly business climate
3. Uncontrollable public spending
2. More adversarial toward business than any other state
1. Poor rankings for California on lists ranging from taxes to crime rates to school dropout rates.

“There is little evidence that California’s business environment will improve considering that the legislature in 2011 has voted down litigation reform, tax-increase plans are underway, and a host of new regulations are to be implemented that will increase costs for literally every business,” Vranich says.

California is shedding business because California is making it increasingly cost prohibitive to operate a business within its borders. And that means California, a very high-tax state, is losing massive amounts of tax revenue — and jobs. All while California continues to profligately spend money like there’s no tomorrow. California Legislators and other government officials even came down here to Texas to find out how Texas is luring businesses away from California.

When California politicians want to visit California jobs, they increasingly have to leave California to do so. That’s why Lt. Governor Gavin Newsom traveled with a small entourage of other Golden State politicians to Texas, the biggest beneficiary of California’s economic policies. So many jobs have fled California to Texas, John Fund writes for the Wall Street Journal, that the governing class needed lessons from Texas Governor Rick Perry on how not to repel business:

“We came to learn why they would pick up their roots and move in order to grow their businesses,” says GOP Assemblyman Dan Logue, who organized the trip. “Why does Chief Executive magazine rate California the worst state for job and business growth and Texas the best state?”

The contrast is undeniable. Texas has added 165,000 jobs during the last three years while California has lost 1.2 million. California’s jobless rate is 12% compared to 8% in Texas.

“I don’t see this as a partisan issue,” Mr. Newsom told reporters before the group met with Texas Republican Gov. Rick Perry. The former San Francisco mayor has many philosophical disagreements with Mr. Perry, but he admitted he was “sick and tired” of hearing about the governor’s success luring businesses to Texas.

And, of course, businesses aren’t all that’s fleeing the People’s Republik of Kalifornia. People are, too.

The Top Three states in tax revenue lost (1999 – 2009) due to people moving away:
New York
California
Illinois

The Top Three states in tax revenue gained (1999 – 2009) due to people moving in:
Florida
Arizona
Texas

While New York, California, and Illinois all have very high income tax rates, Florida and Texas have no income tax.

For those of you moving from California to Texas (really from any Leftist state to Texas), The Grouch at Right Truth has a little language translation aid for you.

Posted in Conservative, economics, Elections, Law, Liberal, Over-regulation, Philosophy, politics, society, Tax, truth | Tagged: , , , , , , | 1 Comment »

If It’s Job Creation You Want

Posted by John Hitchcock on 2011/08/28

Then you might want to look to where job creation has occurred. Dana Pico posted a pie chart I found very interesting. It shows only 9 states plus Washington DC added jobs from June 2006 to June 2011. (Washington DC is most likely all government jobs, so it doesn’t really count.) While the pie chart focused on the Texas job creation, I wanted to do a little number crunching myself. And of course, the numbers are very interesting.

The pie chart says “with roughly 8 percent of the nation’s population, Texas added 73.4 percent of the nation’s new jobs.” I decided to look at the US as a whole, Texas, and Alaska. Here’s the data I used:

According to the 2010 US Census,
The US population was 308,745,538
Texas population was 25,145,561
Alaska population was 710,231

According to the pie chart,
Texas added 537,500 jobs (73.4 percent of total)
Alaska added 11,500 jobs (1.6 percent of total)

US Job Growth (in thousands)

According to the Bureau of Labor Statistics, the 61 months from June 2006 through June 2011,
US lost 4,818,000 jobs

Now for some number crunching.
Alaska has 0.2 percent of the US population and of the 9 states plus DC that added jobs, Alaska accounts for 1.6 percent of the added jobs.
Texas has 8.1 percent of the US population and of the 9 states plus DC that added jobs, Texas accounts for 73.4 percent of the added jobs.

Alaska added 1,619 jobs per 100,000 population.
Texas added 2,138 jobs per 100,000 population.
US lost 1,561 jobs per 100,000 population.

Subtracting out Alaska and Texas population and job growth,
US lost 5,367,000 jobs total or 1,897 jobs per 100,000 population.

To recap, Alaska and Texas combined for 549,000 new jobs or 2,123 jobs per 100,000 population while the rest of the US lost 5,367,000 jobs or 1,897 jobs per 100,000 population. I suggest Sarah Palin and Rick Perry are both better qualified to create an atmosphere where jobs can be created than either George W Bush or Barack Obama; however, if you look at the BLS chart, the US didn’t start shedding jobs (other than one month in 2006 and two months in 2007) until 2008, and since the new Democrat Congress — both the House and the Senate – was sworn in in January of 2007, George W Bush might, just might get a pass.
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UPDATE: Linked by Texans For Sarah Palin

Posted in economics, Obama, Palin, politics | Tagged: , , , , , , , | 4 Comments »

Rick Perry Signs Texas Incandescent Law

Posted by John Hitchcock on 2011/06/20

If you live in Texas, you will be able to continue to buy incandescent light bulbs after the Federal ban is in place. The Texas Legislature passed, and Governor Perry signed, a law that nullifies the Federal ban. Very Tenther, TEA Party, Free Market of him. From Tina Korbe:

Texas Gov. Rick Perry today signed a law that will free Texans from the federal government’s impending incandescent light bulb ban:

The measure, sent to Gov. Rick Perry for consideration [he subsequently signed it], lets any incandescent light bulb manufactured in Texas – and sold in that state – avoid the authority of the federal government or the repeal of the 2007 energy independence act that starts phasing out some incandescent light bulbs next year.

Texas wasn’t the first state to explore this kind of legislation: South Carolina has advanced a similar bill and, last year, the Arizona legislature passed a bill to the same effect — but Gov. Jan Brewer vetoed it.

You know who will be up in arms about this? Errr, I mean, you know who will be up in arms about this.

Posted in Conservative, Constitution, economics, Elections, Environmentalism, Over-regulation, Philosophy, Politically Incorrect, politics, society, TEA Party | Tagged: , , , | 6 Comments »

 
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