Companies Fleeing California For Utah Over Confiscatory Tax Rate

Posted by on Aug 25th, 2010 and filed under Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

(Warner Todd Huston/The Union Label) – Computer software giant Adobe, computer game monster EA Games, and Internet auction king ebay are abandoning California to set up shop in Utah. Why? California’s horrid business climate and high taxes.

Adobe Systems, maker of a suite of graphics programs such as Adobe PDF, Illustrator, Photoshop, and InDesign, have announced that they are building a $100 million facility in either Salt Lake City or in nearby Utah County, Utah. The facility will bring thousands of jobs to Utah over the next few decades.

In May the Internet auction company ebay also announced a major new facility to be built in Salt Lake City. The $287 million data center will also bring hundreds of new jobs to the Bee Hive State.

Not to be forgotten, games maker Electronic Arts opened its new facility in July in Salt Lake City where around 100 employees are already at work.

These companies fleeing California’s horrid business climate are not alone. There has been a steady flow of businesses out of California for the better part of a decade. As California’s political morass worsens, as its budget woes increase, and as her politicians are proven incapable of making the hard budgetary decisions to take power from unions and chop unnecessarily lavish social programs, the state’s jobs are bleeding out. California is an a freefall the end of which is still unseen.

Here is a partial list of the large and medium-sized companies that have either moved parts of their business or have left the “land of milk and honey” for brighter prospects altogether:

Abraxis Health, Adobr Systems, Inc. Alza Corp., American AVK, American Racing, Apple Computer Audix Corporation, Apria Healthcare Group, Assurant Inc., Barefoot Motors Bazz Houston Co., Beckman Coulter, Bild Industries Inc., Bill Miller Engineering, Ltd. BMC Select , BPI Labs, Buck Knives, CalPortland Cement California Casualty Group, CalStar Products Inc., Checks To-Go, Chivaroli & Associates CoreSite, A Carlyle Company, Creel Printing , Dassault Falcon DaVita Inc. , Denny’s Corp., Digital Domain, Ditech DuPont Fabros Technology, ebay, Inc., EDMO Distributors, Inc. Edwards Lifesciences, Electronic Arts, Inc., EMRISE Corp., Facebook FallLine Corporation, Fidelity National Financial, First American Corp., Fluor Corp. Foxconn Electronics, Fuel System Solutions, Gregg Industries, Hewlett-Packard Hilton Hotels Corp., Hino Motor Manufacturing USA, Intel Corporation, Intuit of Mountain View J.C. Penney , Kimmie Candy Co., Klaussner Home Furnishings, Knight Protective Industries Kulicke & Soffa Industries Inc., LCF Enterprises, Lennox Hearth Products Inc., Lyn-Tron, Inc. Mariah Power, Maxwell America, Miasolé, MotorVac Technologies Nissan North America, Northrop Grumman, One2Believe, Patmont Motor Werks, Inc. Paragon Relocation Resources, Pixel Magic, Plastic Model Engineering, Inc. Precor, Premier Inc., Pro Cal of South Gate, Race Track Chaplaincy of Amer., Red Truck Fire & Safety Co. SAIC, Scale Computing, Schott Solar Inc., SimpleTech Smiley Industries, Solaicx, SolarWorld, Special Devices Inc. StarKist , Stasis Engineering, Stata Corp., Tapmatic Teledesic, Telmar Network Technology Inc., Terremark, Terumo Cardiovascular Systems Toyota, True Games Interactive Inc., TTM Technologies, Understand.com US Press shifted, USAA Insurance, Yahoo. And many more.*

It should be noted that Utah is a right-to-work state.

(*Source: SpectrumLocationSolutions.com)

36 Responses for “Companies Fleeing California For Utah Over Confiscatory Tax Rate”

  1. Durk Pearson says:

    My businesses and I left California for Nevada two decades ago…

  2. jukin says:

    All those jobs that left have been more than replaced by ‘green’ jobs.[/s]

  3. john says:

    There goes the neighborhood

  4. Jim says:

    What is about liberalism and socialism and progressivism and unions and illegal immigration and corrupt politicians that is so difficult to understand for
    California voters? The most unAmerican state will be America’s first state to fall. Californian voters obviously live by the credo..”Let the next guy lose his free stuff….but don’t touch my program..don’t touch my pension..I deserve it”. It is so much more than sad to see an entire population corrupted by its leaders to the point of social failure.
    Signed,
    Leaving Los Angeles

  5. I like your post. I think E filing is the best option for Utah state tax. Now It’s very easy to know our Utah state tax refund status.

  6. Great article, except that there isnt any actual data or references to the companies that have left California. Adobe Systems creating “thousands of jobs over the next few dacades”??? They could create 2001 jobs over, what, 30-40 years???? Big Deal. Wake up and smell the meth you are cooking in North Vegas (or Sparks).

    Big whoop about nothing.

    California is still the 6th largest economy on the PLANET. Our tech company founders are still counting their Billion$ on the ‘left’ coast.

  7. Jim says:

    I left in 2003

  8. Jesse Rochopie says:

    CA is going down hard. Their state bonds are are less than junk grade and the state employee unions own the budget process. The state will be forced by the bond market into BK within 12 months!!

  9. Iska Waran says:

    “California is still the 6th largest economy on the PLANET.”

    Oooooh…Planet… First, it’s 8th largest. Second, that mostly goes to show how ginormous the entire US economy is compared to that of other countries. California’s GDP is 13% of US GDP. Which makes sense, since CA’s population is about 13% of the US population. http://en.wikipedia.org/wiki/Economy_of_California

    Basically CA is a high-population state. “Big whoop about nothing”. Add up almost any two US states whose population totals to equal California’s and you’ll get a GDP (or GSP, technically) almost identical to that of CA’s. NY+FL >CA. and TX+IL>CA, for example. http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP_(nominal)

    Some Californians think the economy there is qualitatively different than the rest of the US. It’s not. Through an accident of geographical history, CA just happened to end up as one big state instead of 2-4 smaller ones. “Big whoop about nothing”.

    None of which changes the FACT that CA is scaring away business with high taxes and absurd regulations.

  10. Nosmo King says:

    I left because I thought we were going to fall into the Pacific.
    I had no idea that it would just fall into the big financial abyss instead.
    (Well that and I couldn’t read the billboards any longer around LA)

  11. SoCal says:

    Purely one sided piece. As if no new jobs have been created? Google alone has 20,000 employees. Mind your own business, your state has enough problems. We are the most populous state for many reasons, beaches, babes, etc!

  12. d_artish says:

    Californians need to wake up and smell the coffee. Vote for republican!

    Go Meg, and do me a favor…. kick all the free loader out. I don’t care how corrupted you are as a business lady as long as you are corrupted for the State of Cali after you have been elected.

  13. K says:

    All those lavish social programs ultimately subsidize big pharma, insurance companies, hospitals and doctors. The money just flows through the sick and dying. How stupid to blame the elder, disabled and dying. INSIST ON COST CONTROL, before you are on your death bed and serving as the host for a parasitic medical-industrial complex. Good luck.

  14. K says:

    Oh yeah, and better control amplified stereo devices; they are really a threat to our economic competitiveness, as they rob people of their thought and focus.

  15. Jim says:

    Is there a source which delineates the number of jobs per company and the pay levels of these jobs?

  16. 3rd Generation says:

    Barbara Boxer, Dianne Feinstein and Nancy Pelosi.

    California is DEAD. The only ones left will be retirees and illegal alien felon invaders.

    LIBERALISM IS A MENTAL DISORDER

  17. California Resident says:

    Aw, you guys are so cute with your “socialism progressivism welfare state unions RAR” talk. I hope that mean old neo-Nazi communist fascist Obama keeps his government hands off your Medicare and Social Security.

    California is structurally broken because of its constitution, which gives unlimited sovereign power to easily-passed ballot initiatives. Initiatives don’t have to make sense, don’t have to be feasible (Prop 13) or moral (Prop 8), and can’t be overruled by the legislature. They commonly mandate more spending, often writing it into the constitution (which is really not what a constitution is for), and Prop 13 took the additional step of requiring a 2/3 vote of the legislature to raise any new revenue.

    (When the grown-ups are alone in the room, we call it “raising taxes,” with the acknowledgement that sometimes it’s necessary and useful.)

    Initiatives tend to be pushed and passed by private interests like corporations and people who hate gay people, so while they’re often baited with the promise of government services, they’re not exactly a source of progressive success.

    As for the cultural differences between California and other places…well, whatever. Some of us prize the intellectual and emotional freedom to be different, some of us prize our .50cal automatic weapons and low-to-nonexistent income taxes. We get to make our own choices. =)

  18. Cal4Life says:

    Our state is broken because our state legislature has debates because they heard some story about an elderly couple eating dog food. Seriously!

  19. John says:

    Hey Cal Res:

    What social security? Obama is going to tax us at a higher rate for that too, and there is a great chance that by 2017 it will be broke and those promised that benefit will get deferred or stiffed. Great! Now let’s create an even bigger entitlement program and call it “National Healthcare”.

    Taxes are necessary. Wasteful entitlement programs are not. It was Winston Churchill or Maggie Thatcher who said of socialism:” sooner or later you run out of other people’s money”.

    Not sure we can fix CA without raising taxes significantly. To many entitlement programs.

  20. Curmudgeonman says:

    One guy, Gil Hyatt, left CA for NV several years ago and CA’s FTB followed him there to try and continue collecting taxes. After several court cases, including one in the SCUSA, the FTB is now appealing their loss to Mr Hyatt of $388 million, plus interest, and Mr Hyatt still has other suits against the FTB in the mill. If the CA tax rates had not been confiscatory, he would never have left CA.

  21. Eugene says:

    The 2/3 vote to raise taxes is about the only thing protecting California taxpayers even higher taxes to fund some politicians pet project. As to propositions, First five is a real winner, using tax money to push a political agenda! When these socalled grown-ups get together alone they are out of the public eye and are free to do whatever they want and spin it however they want . That is the essence of the backroom deal and usually involves higher taxes or more rules and regulations. The way the state is gerrymandered they don’t suffer any consequences of there actions. The city of Bell is a microcosm of the whole state!

  22. JimBo says:

    The other factor is high housing costs.

    For a new company with young employees, you’d have to pay them 5 times more for them to buy a house.

    Ideally, you’d move to a new exurb in an interior state where you can get brand new homes for $200,000 or less.

  23. Eugene says:

    The “official” unemployment rate in California is over 12%. How is that reflected by direct state government workers? Their rate is close to zero. Local governments have laid people off because the local revenues have been confiscated by the state. The recycling fund is broke because the legislature has raided the fund while people are recycling at a higher rate due to the economy.

  24. Misstrial says:

    Hi Jim:

    As a fourth-generation Californian, let me answer your query:

    “What is about liberalism and socialism and progressivism and unions and illegal immigration and corrupt politicians that is so difficult to understand for
    California voters? ”

    Most of those who continuously vote for the same politicians from the same political party (i.e.: Democrat) fall into either of the categories below:

    1. Union workers of counties and the state whose jobs depend upon continuous social programs.

    To wit: Diane Bass’ District is comprised of voters of color who occupy Los Angeles City and County positions servicing social programs in these areas. They got the jobs primarily through Affirmative Action/EEOC and almost always fill new or existing positions with persons who “look like me.” Whites will never get hired – the door is shut for them.
    These public employees will always vote Democrat even if the party’s policies are ultimately destructive to the state.

    2. Teacher Union members and executives.

    An old Californian (a former Kern County HS principal) told me that education in California went downhill when the teacher’s became unionized. Reason being that the focus shifted off of teaching and educating to marxist strategies for wage and benefit increases.
    Teacher’s unions took their clues from marxist organizing and threat techniques developed prior and instituted during the 1917 Bolshevik Revolution.

    3. Adult anchors of illegals.

    These persons now occupy elected positions and Latino voters – many of whom are compromised by association by family with illegals – keep voting them in. There is a lot of arrogance and guilt in the Latino community simply because they knowingly assisted relatives and friends and friends of friends to come to the USA illegally. This includes many Latinos who hold an elected office or who are in positions of power.

    4. Socialist-leaning newcomers to the state from produce-nothing areas such as the Rust Belt and New England.

    This also includes students from out-of-state who moved here with a counter-culture belief system during the 1960′s to the present.

    5. Voters, primarily female, who tend to vote with the female herd and ignore facts and evidence.

    These persons vote on the candidate’s popularity with other females, much in the same way popular students in high school are rated (looks, appearance, manner of dress, athletic skill).

    6. Employees of public and private colleges and universities.

    These persons tend to be marxist in their thinking as well as represented by collective bargaining. All Admissions Officers are compromised and preference people of color and foreign students over whites. They are what I term “Wite Outs” (like the correction tape) because they hate white students.

    Think about it: one of the admission requirements to many colleges is proficiency in a foreign language. Obviously Asian and Latino students have an advantage due to a cultural refusal to use English as a primary language in the home.

    You would think that by now, Admissions Officers would have changed the language requirement to provide that the foreign language requirement can only be met by learning a language from other than the student’s ethnic or racial background.

    Persons from numbers 1 – 6 above now out-number productive voting citizens or at the least, are close to complete voter takeever.

    Additional:

    Those who passionately argue online for “the poor, etc” are generally social service workers who have the time to spend at work on the internet to defend their jobs using “the poor etc” as excuse fodder. Most poor or disabled persons move to affordable inland areas, such as Inyo County. Poor people generally cannot afford the Internet.

    “The poor, etc” these posters refer to are illegals and their kids and illegal relatives, not Americans. I know this for a fact.

    Other problems:

    The takeover of California’s law schools, beginning with Boalt Hall and UC Berkeley Law School by marxist law professors beginning in the 1950′s and cemented in the 1960′s.

    The change in journalistic ethics in the 1960′s for The Los Angeles Times and the decline in the Herald Examiner back in the 1980′s. The Examiner, a conservative newspaper eventually went out of business, leaving the Los Angeles Times as the sole major newspaper for Southern California. This state of affairs meant that there was no check or alternative on the socialistic bent on paper news reporting for the southern half of the state. Until the Internet.

    Hope this gives other areas of the country a warning of the takeover pattern.

    As I see it, Utah is in danger of becoming another example of socialist takeover.

    Decline begins with the law schools and colleges and illegal immigration.
    If you can stop it at those points, you’ll do OK.

    ~Misstrial

  25. Mac says:

    Misstrial, you’re entitled to your Orange County opinion, but it has lots of holes in it.

    The Northeast – Massachusetts particularly – IS a huge producer.
    I don’t fit any of your neat categories – in my opinion, Reagan started California on its journey to hell. Free, easy education MADE Silicon Valley what it is. TAX dollars made SoCal what it was – a place where people with little education could make good money in aerospace. Once the TAX DOLLARS ran out, these folks were screwed.

    Presumably, they’ll also be building lots of desalination plants in Utah, because it’s not as though there is a lot of water there.

    The right wing is slowly dying off. I’m enjoying it.

  26. Eugene says:

    Mac, why do you think all these companies are fleeing California? Fortunately people have other options and are not held captive. Social services are dependent on tax revenue. If there is more tax takers than tax payers the system collapses. Individuals who work in the private sector will follow these companies to less oppresive states. Ask yourself at what point does an organism change from being a symbiote to a parasite.

  27. Misstrial says:

    Hi Mac:

    I’m from Los Angeles County and my spouse’s family are from SF.

    You make some defensive statements regarding the Northeast – which is probably where you’re from.

    Do us Californians a favor and go back. Thanks.

    ~Misstrial

  28. Enlightenment says:

    I’m going to laugh when the next 9.9 earthquake hits mexifornia.

  29. Eric says:

    Don’t worry, the Feds will bail out California with Utah taxpayer money (and every other state) And in the end the California taxpayers will get all the benefits because they are enjoying a much higher level of government service and spending in the past and currently. In fact the more they spend and go into debt right now the better off they will be, it’s just like the banks!

  30. Anonymous says:

    Companies came to California bringing more people and ruining the landscape…Good Luck Utah

  31. Anonymous says:

    “These persons vote on the candidate’s popularity with other females, much in the same way popular students in high school are rated (looks, appearance, manner of dress, athletic skill).”

    Generalize much Misstrial?

  32. Jeff says:

    I am very happy those companies are staying in the United States. Many california companies simply went overseas. Maybe when enough companies leave califonia can finaly enjoy cheap housing, moving into all the abandoned skyscrapers. Also, maybe they will realize unchecked immigration is simply not sustainable. As the latino population becomes 3rd 4th and 5th generation hopefully the emotional ties and sympathy will wear off and california can finaly enact real immigration measures.

  33. Jill says:

    um, you’re forgetting to mention that house prices are far lower in Utah. The business wouldn’t need to pay them as much in order for them to get ordinary houses and have enough left over to fund retirement and children etc. In comparison, the difference in tax rates doesn’t amount to much

  34. The Equalizer says:

    Ha ha…CA won’t be bailed out in the next two years, YoMama is effectively neutered! I can guarantee that. I hope you do go bankrupt along with New York…bunch of leftist parasites. The smart residents will move and then the leftys can see who was pulling the wagon.

  35. David says:

    My wife and I are professionals. We were paying $1000/month in state income taxes and an outrageous amount for sales taxes, rent, etc. We moved to Texas a few years ago. We have a nice home and Texas has no state income tax. Our financial life is so much better. Leaving California is kind of a no-brainer.

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