Saturday, March 12, 2016

Carl's Jr headquarters being pushed out of expensive California

I think a conservative person wrote this article about businesses being driven out of areas by high taxes implying higher taxes are bad.

I have a somewhat different take, of course. In spite of California's high taxes, business is booming in many parts of California; especially in places like the San Francisco Bay Area. That prosperity is driving up the cost of living; for instance rents and property values. Also taxes, of course. Teachers have to be paid more so they can afford to live in those areas. Teachers, who work for the government, get their salaries from taxes so the taxes go up. Taxes go up along with the cost of living and the cost of doing business. Some businesses do get pushed out to other parts of the country that are more depressed. Those other parts tend to have lower taxes, but maybe it doesn't cost as much to live in those areas if you are, for instance, a teacher. Salaries for teachers and the taxes those salaries create can be lower.

I guess we can't have it all. We can't cram everything, including all the businesses and people, into California.

Conservatives also complain about high corporate taxes in USA as this article mentioned a company moving to Canada for lower corporate taxes. Yes, our "liberal" neighbor to the north has lower corporate taxes, but again, we can't have it all. Canada makes up for that revenue loss with higher taxes on wealthy individuals.

I've often thought we could lower our corporate tax rates so businesses would be encouraged to invest back in America, but, not being able to have it all, we would make up the revenue loss by taxing our wealthy individuals more.

Many rich executives talk about the need for business to have a tax environment that's reasonable rather than punitive, but they use that legitimate need to go cart-blanch on justifying all forms of getting wealthy, including unscrupulous forms of obtaining and keeping wealth.

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