Thursday, February 14, 2013

Austin-American Statesman: Companies Fleeing California for Central Texas

It looks like Governor Perry's trip to California is already yielding results, the Austin-American Statesman reports:
Californians seem responsive to Texas’ low tax message, especially since the most recent state election in November, when income and sales taxes increases were approved by California’s voters in a measure called Proposition 30.

“We have had a spike of double or triple the amount of normal (business relocation) activity since the November election in California,” said Dave Porter, senior vice president for economic development at the Greater Austin Chamber of Commerce.

[T]he tech companies there have had enough,” Porter said. “We are seeing mid-sized tech companies say, ‘This is it.’”
Many California tech companies are familiar with Austin because of its existing tech community, the presence of the University of Texas at Austin and the local tech workforce.

Now, with the California tax hikes, Porter said, the chamber is getting inquiries and visits from high-tech executives who are considering relocating their headquarters operations out of California to avoid that state’s income taxes.

“We have had tons of prospects and inquiries from California,” Porter said. “And the common theme is: the sooner (the move out of California) the better.”
 It looks like Galt's Gulch is coming to Texas.

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