AB32 employer exodus from California begins

[Letter to the Editor, Orange County Register:]

“Since 1983, I have owned and run a small electronics firm in California. I currently employ 32 great people. The average wage is $23.46 per hour, and I pay two- thirds of the employees medical costs. I treat my employees as part of my extended family. Birth or death in the family, they get a few days with pay. Special occasions are always acknowledged and celebrated.

A recent discussion with my accountant determined that in order to comply with AB32 it will cost me almost the same amount as my yearly payroll. Now add in all the new or raised business taxes, and I must more than double the company income to make ends meet.

I received an offer from the state of Nevada. If I move my company to Nevada, my taxes will be 83 percent lower, no AB32 complications. Lower health care costs and more. It’s a no-brainer. I am laying off my entire staff and moving to Nevada. So, as of Dec. 31, 2010, the state of California will have 32 highly skilled workers on their unemployment hands. The unemployment rate is high in Nevada, so I can hire all new employees for much less.

I am sure I am not the first company leaving, and I won’t be the last. California, what you sow, so shall ye reap.

ANAHEIM, R. Frautschy”  “California’s new lifestyle:  unemployment


4 Responses to “AB32 employer exodus from California begins”

  1. Jean Meadows Says:

    Dear R. Frautschy,

    You are not alone. I am not sure what the percentage is for companies that have ditched on California for the last 6 to 8 years is. I do know that California makes up over 70% of the national mortgage debt. I do know that there were 720,000 (+/0) licensed real estate professionals nationally and 350,000 were in CA. I do know that CA did not require any mortgage training for loan officers and recently gave them a waiver so that they can take an 8 hour class to write home loans (which are federally regulated).

    If you are leaving California… Good For You! Your Smart…. I live here in California and the minute I can pack my bags and move my company… we are out of here too.

    They have allowed illegals to abuse our schools, jobs, educational system, funding programs, and denied the military access to recruit. They want the blanket of freedom to complain, they want the high life, but they aren’t willing to pay for it and they have shoved the entire nation into a financial debt that could have been avoided by using common sense.

    It is my understanding that 1 out of 6 Americans is on some form of Federal and State Assistance (Welfare). That 3 out of 6 Americans is working for the government (Federal, State, City, County or Military). That just leaves 2 Americans out of 6 that are generating revenue for the rest of them. Out of those 2 Americans that are generating taxable productive dollars, 70% of the tax base is paid by 5% of them.

    That 5% equals business owners. Thats right Business Owners… which create jobs and make stuff. You know STUFF… food, clothes, shelter… So the head hunt that everyone is on to punish the rich is way off. The rich don’t make money if the poor aren’t working. The rich my friends is the guy who owns his own business and is trying to find a place he can afford to feed his family and stop watching his employees suffer with things like a 20% increase in the cost of food over the last several months.

    California lost the Production of 5 Oil Refineries which are in global high demand, Wind Energy Project Funding to France, the Cement Import into the East Bay, the Clean Car Project with Mercedes to Tesla, the Road Way Project to Spain, and the Hydrogen Engine Production Plant is next to be lost.

    Since California is not going to take care of you, the Federal Government doesn’t know your name and doesn’t care if your laying people off, pack your bags, get a bucket and brush, leave and don’t forget to change the population sign on the way out!!!

    In short, the worst is yet to come and they haven’t even gotten started yet.

  2. David Says:

    It is not just employers who are leaving. My wife and I are engineers and we left the bay area in January, 2007. We were paying more then $800/month in state income taxes alone. We moved to Texas which has no income tax. Also, housing, food, electricity, gas is way cheaper in Texas. Really improved our standard of living. Leaving California is a no-brainer.

  3. Melissa Says:

    I have been working toward a move out of California since June 2009. I are just about there, as long as I continue on track I should be crossing the line outbound in April 2011.

    I used to work in distribution, it is really all I know. I left my job in May 2005, took some time off to be with my young son. I got by working part time, living with no overhead, and using a bit every month out of savings.
    In Sept 2008 I began pounding the pavement again and found that my line of work was not hiring anywhere with anyone. We were living in Northern California, Butte County, Oroville.

    What I was running into outside of looking for work in my field (IE local fast food, thrift stores,ect) was that there was a tax break set in place for the local businesses that would agree to hire only from within the county, the individuals who are listed on the Welfare rolls. It was suggested to me that I go get on welfare and then I would be hire-able.

    After about 5 months, and more than 200 applications a month, I packed it in. I got the deposit back from our place and used our last 1000.00 I had in savings to make the move 800 miles south to my fathers house~ in the middle of the desert. I had no plan at that point, other than to not go homeless. My fathers house is small, but it is doable.

    After considering the employment weather, I decided based on current events, the employment ways I knew from my previous 15 years of experience was not going to return to the good old days anytime soon. I decided I needed something to barter, something that would also benefit our family if need be and something I could transfer if I should need to transplant due to economic conditions.

    I got myself enrolled in a nutrition course which will benefit my family in the ways listed and kept at it. More than a year later I have finished, at the end of Sept 2010.

    During this period I considered intensely 9 states for relocation.
    Missouri, Kansas, Oklahoma, Nevada, Alaska, Oregon, Wyoming, Montana, and Idaho. I spent over 15 months heavily researching politics,unemployment, housing costs, taxes, land use, gun rights, water rights, water rates, whether or not the community we are looking at provides it’s own electricity (electric Co-Op), weather, employment climate, and local community traditions.

    I recently settled on Idaho Falls Idaho in Sept.

    As I am aware I will not be welcome, and the predominant religion that has the most influence in the area are the LDS. That is just fine, I have spent many many hours on the City-Data Forums reading and posting and speaking with others who actually live in the area and the best advice I think I have ever come across when looking ahead to a relocation is

    “Don’t move from a place, move to a place”

    I do not expect it to be roses, I don’t even know if it will work but I do know I can never again make enough money under the current circumstances in California to afford a place of my own again. Or, even buy in the future even if the freeze were to ever come off of the lending groups.
    I also know that if I am required to be on welfare to get a job, that is not a place for me either.

    So California, for me, is not an option right now, or in the future. I will be leaving my parents and grandmother behind as they are settled in and are of the opinion it will be ok later. They also have a guaranteed income, not a variable one.
    So that is what is, sad but each person has to make the move that is the best for them.
    One thing I am most sure of, I am not the only one.

    Best of luck to everyone making their long journeys, although not migration of the turn of the century, it is still a journey that takes courage and the ability to let go…..

  4. jblethen Says:

    Best of luck to you, Melissa.

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