Governors Continue to Court Business to Move Out of California

The Orange County register has an interesting article today about a different type of political campaign–governors’ campaigns targeted at California businesses (particularly in my home base of Orange County), wooing them to their states.  And these governors have plenty to talk about with respect to their states’ comparatively business friendly environment.  Here is a key excerpt from the article:

Unlike Gov. Perry, the Utah and Virginia governors do not plan an ad campaign in California. Perry’s highly-publicized visit was accompanied by a radio ad in which he declared, “I hear building a business in California is next to impossible.”

Gov. Jerry Brown dismissed Perry’s overture as “not a serious story” and mocked journalists who “run like lapdogs to report it.”

Lucy Dunn, president and CEO of the Orange County Business Council, responded to the new poaching effort with tough talk. “Orange County is a great place to do business,” she said. “And California has two big things those other states don’t: the best climate in the world and the largest market in the U.S. with 38 million people.”

Dunn, however, acknowledged that the recruitment efforts amount to “a wakeup call. There’s no question California has a very high corporate and income tax rate.”

The Washington D.C.-based Tax Foundation reported this week that California’s personal income tax is the sixth highest in the nation, and its corporate tax is the fifth highest. The state’s excise taxes and property taxes, however, are among the lowest in the country.

Real reform is needed in California to make it a place that is as easy to do business.

Author: Kent Schmidt

As a Partner in the Southern California office, Kent practices in virtually all types of general business litigation, with an emphasis in unfair business practices, First Amendment litigation, defamation, trade secret litigation, class actions, product liability, securities litigation and enforcement, commercial disputes, employment law, intellectual property and Prop 65 (environmental) claims. He is an aggressive and creative courtroom advocate, representing both plaintiffs and defendants. Having spent his entire legal career at Dorsey, Kent is adept at finding the right lawyers in the firm to collaborate with in order to provide the best representation for his clients.