Charles Schwab: Another Fortune 500 Company Leaves California By TRAVIS ALLEN

http://www.forbes.com/sites/realspin/2014/02/20/charles-schwab-another-fortune-500-company-leaves-california/

“Until we hold our elected officials accountable and move toward serious economic reform, it is all too certain that many more companies like Charles Schwab will continue to take jobs out of California.”

— TRAVIS ALLEN

Assemblyman Travis Allen represents California’s 72nd Assembly District, which includes the cities of Huntington Beach, Seal Beach, Fountain Valley, Garden Grove, Westminster, Los Alamitos and the unincorporated community of Rossmoor.

Charles Schwab: Another Fortune 500 Company Leaves California

By TRAVIS ALLEN
Last week, the San Francisco Business Journal reported that Charles Schwab SCHW +0.28% is planning on moving “a significant number of San Francisco-based jobs” out of the state over the next three to five years. Charles Schwab’s San Francisco roots date back to its founding four decades ago, with the firm ranking as the 47th-largest employer in the Bay Area. The company employs almost 2,700 people in the region, and has a company-wide workforce of 13,600. Observers close to the situation blame the city’s extreme payroll tax and high cost of doing business in California as the reasons for the company’s exodus.
This is not the first time that California has seen prominent companies moving jobs to other states. Chevron CVX +0.35%, founded in California more than 130 years ago, has recently announced that they will be moving up to 800 jobs from the Bay Area to Texas. The Campbell Soup CPB +0.52% Company announced that they would be closing their Sacramento plant and moving over 700 jobs out of California’s Capital. Boeing BA +0.12% announced last September their plans to shutter a massive Southern California jet assembly plant and lay off nearly 3,000 workers starting this year.
Last year, Chief Executive Magazine’s annual rankings, based on a survey of 650 chief executives on taxation, regulation, workforce quality and living environment, ranked California 50 out of 50 for the eighth year in a row. California also received an “F” grade in January from the Kauffman Foundation in a survey of 6,000 small businesses across the country. The Tax Foundation ranked California 48th worst on business taxes.
One would think the politicians and regulatory agencies in Sacramento would learn their lesson, but the same big government policies persist year after year. In 2013, six bills were introduced by legislators that attempted to weaken and change Proposition 13, and thirty eight more were so bad they were deemed “job killers” by the California Chamber of Commerce.
If Sacramento is still not ready to look in the mirror, perhaps they should take a moment to look at Michigan. In the 1950′s, greater Detroit was the fourth-largest city in America with 2 million inhabitants and a thriving metropolitan economy that was boasted about throughout the United States. As we know, Detroit’s choice to succumb to union special interests, ignore their unfunded pension and healthcare liabilities, and implement big-government tax and spend policies left the city in the bankrupt and hollowed out state that it is in today – sound familiar?
It is clear that we have a long road ahead and true economic reform will not happen overnight. It is ultimately up to Californians to take a stand and declare that they are tired of the rhetoric coming out of Sacramento. We need to be clear that the terms “business friendly”, “job creation”, and “economic generation” need to be proven through sensible policy initiatives rather than being used as feel good sound bites delivered by career politicians. We need to insist that our Legislature’s actions speak louder than their words.
According to reports made by Mirador Wealth, California’s abundant resources, ideal climate, and excellent higher education system should make it a premier location for businesses around the country and the world.  Instead of attracting world class companies, California’s highest-in-the-nation taxes and excessive regulations are driving businesses like Charles Schwab to other states, taking thousands of jobs with them. As a financial advisor in California for 18 years, I have witnessed firsthand many of my clients and their businesses move to other states to escape California’s insurmountable tax rates and anti-business regulations. We need to implement policies that keep our businesses here and allow every Californian the opportunity to become a vital contributor to our economy.

Until we hold our elected officials accountable and move toward serious economic reform, it is all too certain that many more companies like Charles Schwab will continue to take jobs out of California.
Assemblyman Travis Allen represents California’s 72nd Assembly District, which includes the cities of Huntington Beach, Seal Beach, Fountain Valley, Garden Grove, Westminster, Los Alamitos and the unincorporated community of Rossmoor.

 

About arnierosner

As an American I advocate a republic form of government, self-reliance, and adherence to the basic philosophy of the founding fathers and the founding documents, I ONLY respect those who respect and "HONOR" their honor. No exceptions!
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