Earlier this week I posted an advertisement from the Nevada Development Authority. The Los Angeles Times had an article today noting that Democrats in Sacramento are unhappy with the advertisements that portray California as a tax-happy state. Of course, Democrats in Sacramento are arguing for more taxes.
Somer Hollingsworth, President of the Authority, told the Times, “We can see what is going on in California as far as businesses are concerned…They’ve got workers’ comp issues, a $16.5-billion deficit, employee retirement funds that are out of whack.”
State Senator Mark Ridley-Thomas (D-Los Angeles) told the Times, “Businesses are here because they appreciate the powers of this economy…I suspect Nevada wishes it could be ranked as among one of the top economies in the world.”
Perhaps the Democrats in the Legislature would like to talk with some of my corporate clients who are again contemplating leaving the Bronze Golden State because of high taxes and too many regulations. Maybe Nevada won’t be the destination, but if California tries to close the deficit on the back of businesses other states will benefit. State Senator Ridley-Thomas is naive if he believes that taxes can increase forever without businesses reacting.