Author Topic: Toyota moving to Texas  (Read 276748 times)

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Offline paperboyNC

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Re: Toyota moving to Texas
« Reply #30 on: April 29, 2014, 11:40:24 AM »
True, but if the relatively modest dollar figure of $40 million is all the incentive it took to uproot a stable long time business the offset costs of simply staying put must have been enormous.  This just illustrates the onerous overhead and costs of doing business in our little corner or heaven.  We need to really re-think our anti-business environment.

Let's think about this for a second. What are the onerous costs of doing business in California?

1) Rent / Real Estate cost for the company
2) Rent / Real Estate cost for the employees

What do you propose we do to fix the #1 and #2 onerous costs of doing business in California?

Offline morekaos

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Re: Toyota moving to Texas
« Reply #31 on: April 29, 2014, 11:49:46 AM »
It's simple math and common sense...Tesla will chose another state also


"Toyota executives didn’t mention cost, but experts said Texas’ low-tax climate surely played a role in the decision.

“No income tax, much, much lower workers’ compensation fees, lower insurance fees probably, lower housing costs– all of these things add up,” said Peterson of AutoPacific.

The Toyota decision comes as California officials struggle to persuade Tesla Motors Inc. to build its new battery factory in the state. The electric car maker has listed Texas, Arizona, New Mexico and Nevada as the four finalists for the 6,500-employee factory, but has also agreed to discuss the project with California officials. Tesla has decided to open a much smaller parts factory in Lathrop

Read more here: http://www.sacbee.com/2014/04/29/6361571/toyotas-texas-shift-reignites.html#storylink=cpy

In addition lower CARB and regulatory environment add to the pain.  I am in no way advocating lack of regulation but this state strangles you with it.

Offline paperboyNC

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Re: Toyota moving to Texas
« Reply #32 on: April 29, 2014, 01:02:42 PM »
  I am in no way advocating lack of regulation but this state strangles you with it.

I agree that we need worker's comp reform here in CA.

What do you propose we do to lower the cost of our real estate and make it more comparable with Texas?

Offline morekaos

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Re: Toyota moving to Texas
« Reply #33 on: April 29, 2014, 01:14:27 PM »
Again, Real estate is only a factor in the overall picture.  If over time we lower the cost of living here, than real estate may normalize a bit but to anyone who is native knows RE prices here have ALWAYS been out of line with the rest of the country and probably always will be no matter the economic environment. That is the premium cost of doing business here, however it is not the ONLY reason not to.

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Offline qwerty

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Re: Toyota moving to Texas
« Reply #34 on: April 29, 2014, 01:41:02 PM »
i dont think you can fix the real estate prices, they will fix themselves over time.  as employers continue to move out of state, in particular higher paying employers, this will cause real estate prices to drop.  one of the reasons irvines real estate prices are high is because of all of the employers in irvine. imagine of half of them left tomorrow, im guessing real estate prices in irvine/OC would suffer a decent amount.

some of the tech employers up north who have set up advantageous tax structures from day 1 (such as google) shield alot of the profits from US taxes so they can continue to operate here even with the other higher costs of doing business in CA.  Valeant who is looking to take over Allergan used to be based in costa mesa and are now canada based which gives them an advantage (due to lower cost of business) when competing against US companies.

Offline eyephone

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Re: Toyota moving to Texas
« Reply #35 on: April 29, 2014, 01:43:41 PM »
It's the regulations and state income taxes in California that's a problem.

Offline lnc

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Re: Toyota moving to Texas
« Reply #36 on: April 29, 2014, 01:46:56 PM »
What do you propose we do to lower the cost of our real estate and make it more comparable with Texas?

Get rid of proposition 13?

It's not going to happen but prop 13 discourage people from selling their homes, decrease inventory and increase property value.  Get rid of prop 13 will encourage people to get rid of their home due to high property tax and potentially increase housing inventory.  Just think Turtle Rock area, if there's no prop 13, many retire home owner will be selling their homes.

Moreover, evidence shows that because homeowners would allegedly keep their homes for longer, young households often rent for longer before buying a house.[31] Because Proposition 13 could be a disincentive to sell, there is less turnover among owners near the older downtown areas, and prices appreciate fastest in these areas.
http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

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Offline paperboyNC

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Re: Toyota moving to Texas
« Reply #37 on: April 29, 2014, 01:48:50 PM »
It's the regulations and state income taxes in California that's a problem.

Virtually every article on the move says it's the housing costs that are the number one factor:

As Automotive News put it, “Despite the deep, creative talent pool in greater Los Angeles, doing business in California has become more expensive for companies and their workers.” Bestplaces.net said that the cost of living for employees is 39 percent higher in Torrance than in Plano, and housing costs are 63 percent lower in Plano.

http://www.forbes.com/sites/dalebuss/2014/04/27/it-makes-sense-for-toyota-to-leave-california-for-texas/

Offline paperboyNC

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Re: Toyota moving to Texas
« Reply #38 on: April 29, 2014, 01:49:42 PM »
What do you propose we do to lower the cost of our real estate and make it more comparable with Texas?

Get rid of proposition 13?

It's not going to happen but prop 13 discourage people from selling their homes, decrease inventory and increase property value.  Get rid of prop 13 will encourage people to get rid of their home due to high property tax and potentially increase housing inventory.  Just think Turtle Rock area, if there's no prop 13, many retire home owner will be selling their homes.

Moreover, evidence shows that because homeowners would allegedly keep their homes for longer, young households often rent for longer before buying a house.[31] Because Proposition 13 could be a disincentive to sell, there is less turnover among owners near the older downtown areas, and prices appreciate fastest in these areas.
http://en.wikipedia.org/wiki/California_Proposition_13_(1978)

I'm all for that. Prop 13 is the worst.

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Offline qwerty

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Re: Toyota moving to Texas
« Reply #39 on: April 29, 2014, 02:08:18 PM »
yeah prop 13 is pretty unfair.  how can two neighbors pay substantially different taxes when they get the same benefits (whether used or not).

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Offline irvinehomeowner

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Re: Toyota moving to Texas
« Reply #40 on: April 29, 2014, 02:09:33 PM »
RE value isn't just tied to employers, it's the first 3 rules of RE... location, location, location.

People like to live here because of the weather and lack of congestion like the older East Coast cities.

If half the employers were to leave Irvine, I doubt RE values would drop, new companies would come in and people would look for new jobs.

Look at Hawaii, not many job centers there but RE over there is expensive because people *like* to live there.

I'm not sure how effective it would be to stop Prop 13 either. Look at how much Mello Roos and taxes people are paying on new builds or move-ups, it's not really stopping people from buying. While it could make people want to sell, where would they go? People stay put because they like where they live, rising property tax versus no more mortgage isn't that much of an incentive.

It cost more to do business in CA, it cost more to live in CA... that's not going to change and if you don't like it... move to Johns Creek*.

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Offline qwerty

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Re: Toyota moving to Texas
« Reply #41 on: April 29, 2014, 02:23:16 PM »
If half the employers were to leave Irvine, I doubt RE values would drop, new companies would come in and people would look for new jobs.


tell that to Detroit.  my point was assuming no companies would come in as replacements since CA is too expensive. i was referring to the long term impact of companies continuing to leave over the long term. 

Offline irvinehomeowner

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Re: Toyota moving to Texas
« Reply #42 on: April 29, 2014, 02:27:13 PM »
tell that to Detroit.  my point was assuming no companies would come in as replacements since CA is too expensive. i was referring to the long term impact of companies continuing to leave over the long term. 
Detroit is not the same as SoCal.
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Offline qwerty

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Re: Toyota moving to Texas
« Reply #43 on: April 29, 2014, 02:49:11 PM »
tell that to Detroit.  my point was assuming no companies would come in as replacements since CA is too expensive. i was referring to the long term impact of companies continuing to leave over the long term. 
Detroit is not the same as SoCal.

but the impact is the same, companies leaving in droves without replacement does bad things to the area.  now i dont think companies will leave socal in large quantities, but if they did, detroit is the blueprint.  i dont think there are enough vacation buyers to prop up the entire Socal real estate market.

Offline irvinehomeowner

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Re: Toyota moving to Texas
« Reply #44 on: April 29, 2014, 03:56:30 PM »
But your premise is flawed.

SoCal is not Detroit in that there will always be replacements because of the superior location and availability of quality workers.

Detroit can't be the blueprint because the location itself does not have the same advantages.
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