Tuesday, December 18, 2018

California Companies Flee Business-Hostile State In Droves

"California politicians threaten the well-being of businesses with one harsh law or regulation after another," he wrote. "Now, in 2018, the state has reached a new low with an awful law."

That "awful law," of course, is California's Immigrant Worker Protection Act. It sounds innocuous, even virtuous, but it isn't. The law basically calls it a crime to follow federal immigration law. Of course, failing to follow federal immigration law is also a crime. Companies can't win, they can only lose.

Democrats counter, of course, that California is booming. Who cares about a few businesses leaving?
The truth is, thanks mostly to Silicon Valley and the digital media boom in Los Angeles, California is indeed doing well right now economically, at least in a macroeconomic sense. A massive influx of Southeast Asian investment money, looking for a Pacific Rim-friendly foothold in the U.S., has helped.

But don't be deceived. In the next downturn, the state's stock-market dependent finances will once again tumble deeply into the red, and the economy will no longer be spinning out new jobs. By then, many of the long-term, stable employers will have left.



https://www.investors.com/politics/editorials/california-companies-leave-taxes/

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