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View Diary: An insulted Rick Perry goes on California job-poaching tour (118 comments)

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  •  Lowering taxes won't bring businesses.... (2+ / 0-)
    Recommended by:
    dewtx, brn2bwild

    Businesses have to weigh liabilities of any location beyond that of simple taxation levels.

    Ready access to educated employees is only the tip of the ice burg that Texas faces in there deluded quest to take jobs from California, rather then create new jobs.

    Texas's legal infrastructure is designed to serve the interests of dirty industry not high technology, This is partly why they do have a number of chip fabrication facilities located in their State.

    Texas is known for under funding public works, being a hostile place to live for anyone who is an "intellectual" or worse an "intellectual women", other then a few places likely lacks the infrastructure of many of these high tech businesses(electricity, fiber).

    Many privately provided services cost more, such as health insurance, property insurance, etc. Business cost of living is somewhat different from individual cost of living.

    This also neglects costs of moving operations, and I am not just talking the cost of the physical moving processes, Their is a cost in the form of trained employees who wouldn't move with the company. cost of setting up new supply chains, cost of replacing suppliers that can't be worked into the new supply chain, potentially increased costs in the supply chain itself from a physically longer supply chain.

    Generally speaking, very few if any companies would take this up based on the brain drain from moving to a place like Texas, let alone the rest of the nightmare in everything else.

    Image if Microsoft moved to Texas, that is 40,000 employees, at best only half would move with the company, so that is 20,000 employees they would have to replace, Perry's pittance tax break is going to even come close to scratching that absurdly high cost.

    Made worse by the fact that most of the employees would have to be imported from out of State.

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