Why This Best-Selling Business Author & Owner Says He’ll Leave California
May 17 2012 by ChiefExecutive.net
Once again, CEOs have voted California the worst state in the U.S. in which to do business. In our eighth annual Best/Worst States for Business survey, 650 CEOs shared their experiences on doing business in America. CEOs call the state a “disaster” and a “complete mess.” One CEO even said, “California is the worst! They are doing everything possible to drive a business out of their state. If the environment in CA was not so good, they would have lost half of their population.”
Grant Cardone, a New York Times best-selling business author and business owner, reinforced our findings when he wrote an open letter in The Huffington Post to California Governor Jerry Brown.
Here’s some of what Cardone had to say.
“Over the last 20 years my companies and myself have willingly and without resentment paid MILLIONS of dollars in taxes in the form of property taxes, sales taxes, payroll taxes, and income taxes. I have funded the educational budget and never had a child in the system. I have created hundreds of jobs in this state through my hard work and risk-taking. 90% of my companies’ income is generated outside the state while 100% of the jobs created are here. Also I spend and invest a majority of the monies I earn around the U.S. in California.
I am from middle-class America and started each of my businesses with no money and without being a burden to the system. I have never used government funding for any of our projects. My family doesn’t use the public school system, hospitals, or any other social services. We are not a burden to the system. During the most recent economic collapse I didn’t let anyone go despite the brutal financial pounding that my companies experienced. Rather than cutting employees, I cut my pay instead and financed my personal life from savings.”
And as a consequence, even though he loves California, Cardone says that if there is another tax hike he will take his family and business out of the state. And Cardone isn’t the only one.
Another of our CEOs said, “California taxes and regulation are just plain silly. They actively work to drive companies out of their state.”
When will California learn? And will they be able to turn things around?