I wonder if it is too late to get a U-Haul franchise? (Update 01-12-12)
01/11/2012 6 Comments
Russ Steele
CalWatchdog has the story:
NEW: Brown Proposes New Anti-Business Super-Agency
By LAER PEARCE
California lost about five and a half companies a week to other states in 2011, as the mass migration to avoid California’s hostile business environment grew. You would think a governor who is hungry for tax revenue — and California has one of the highest corporate tax rates in America — would do something to slow the tide, but Jerry Brown’s new budget proposal tells another story.
First, bureaucracies like the California Air Resources Board that are highly efficient in throttling businesses have nothing to fear in the new budget. Brown is all-in on CARB’s anti-global warming campaign, as AB 32 implementation is unscathed in the budget. Brown is not thinking about the war on greenhouse gases’ expected $180-billion-a year hit on the California economy; rather, he’s focused on the $1 billion in new 2012-2013 tax revenues he anticipates collecting under the state’s new cap and trade law.
But that’s just the tip of the supposedly rapidly melting iceberg. Tucked away in the “making government more efficient” section of the budget is a proposed new anti-business government bureaucracy, the Business and Consumer Services Agency, that should speed up the flight of employers from California.
Super-Agency
Under Brown’s proposal, the Department of Consumer Affairs, the Department of Fair Employment and Housing and a handful of business licensing and inspection departments will be merged to form the new agency. Fair enough. Maybe they will be able to find some efficiencies. But the red flag for business owners is this: Into this amalgamation of bureaucracies that fundamentally see business as the enemy, Brown is dropping “the newly restructured Department of Business Oversight.”
Scan the list of 380 state agencies and you’ll find no Department of Business Oversight, so it appears this isn’t a case of restructuring an existing agency, but of creating an entirely new one. California’s already excessive amount of business oversight is one primary reason why CEO Magazine listed California as the worst state for business for the last four years in a row. Creating a new department tasked to impose yet more controls on business, and placing that department in an environment that’s already steamy with anti-business hubris, will only make things worse.
It looks to me like Brown is setting the stage for the final exodus of business from the state. More regulations, more taxes, and more litigation, sounds like a supermix for the generation of more tax revenue creating business in California, especially those fortunate to have a U-Haul franchise.
Update from State Senator Mimi Waters 33rd District Newsletter (01-12-12):
| New law reinforces California’s reputation as “the worst place to do business”by Senator Mimi WaltersCalifornia’s lingering economic recession is a direct result of the state’s overzealous regulations on business. Frustrated by the constant hassle of dealing with high fees and predatory regulators, businesses are fleeing California in record numbers. According to business relocation expert Joseph Vranich, in the past three years, two hundred and ninety-one businesses and 1.2 million jobs have left California.
A prime example is Sacramento’s largest publicly traded firm, Waste Connections, which recently announced the relocation of its headquarters and over one hundred jobs to Texas, due to California’s toxic business climate. A recent poll conducted by Chief Executive Magazine, found that CEOs rank California as the worst place to do business in the United States. Instead of developing legislation that would unshackle constraints on business and remove barriers to job creation, the California legislature continues to impose more harmful regulations. Senate Bill 459, authored by Senator Ellen Corbett (D-San Leandro) illustrates how California continues to wage war on jobs and its own economy. |


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