Gov. Brown Chases Business to Vegas

John Seiler:

Gov. Jerry Brown and the other anti-business fanatics in the Legislature and government unions just don’t get it: If you attack businesses, they leave California.

A recent departure was Pixel2Canvas, which split Lake Forest for North Las Vegas. It’s noteworthy that the company left Orange County, which has a much better business climate than the rest of California because the locals are more libertarian. But Orange County still is in Taxifornia. Reported the Orange County Register:

You coulda seen this coming. A year ago, Curt Benton moved his company, Pixel2Canvas and its 14 jobs, from Lake Forest to North Las Vegas.

The company is a fine art printer that puts digital art onto canvas, a process called gliclee.

Initially, Benton planned to keep his family in Orange County and commute. But now they have moved to Nevada too.

What happened? “Nov. 4,” Benton said.

That was the date of the last election in which Democrat Jerry Brown won the governorship, the Democrats increased their majority in the state legislature.

“It’s clear there’s not going to be any pro-business turn in the politics of California,” Benton said in a phone interview from North Las Vegas.

He sat down with his accountant and found out he would save $60,000 in business and personal taxes and workers comp insurance by moving everything to Nevada.

Got that, Gov. Jerry? You are at fault. Your election. Your anti-business attacks. Your assaults on taxpayers. Your subservience to the greedy government-worker unions.

Booming in Nevada

The Register story continues:

Nevada’s welcoming business climate has allowed Benton to expand, creating even more jobs — in Vegas, not California:

While I was barely hanging on in Lake Forest, my business is now flourishing in sunny Las Vegas, 42% increase over the previous year’s numbers,” he said.

“All the non-entrepreneurial folks say that I’m being greedy by not paying the taxes I should be paying in California but let me tell you what I’ve done. I’ve turned (the money I saved) back into my company with $100,000 in new equipment purchases and started two other ventures to employ additional people currently looking for work. That’s how greedy I am.”

Benton started a consumer side, that puts photos on jewelry, purses and more, and a motor sports company called CB Motorsports LLC. He’s considering a third venture to distribute a unique product from China.

But California is so anti-business that Benton couldn’t expand here. Benton:

“I could not have done what I am doing now in California,” he added. “I have run the numbers. Growth that I’ve enjoyed here in Vegas would have increased my tax burden significantly [in California] and I would have decided to just sell the company or stay small.”

The message is clear: California is the state most hostile to business, especially small business. The governor, supposedly a bright guy, is totally beholden to the tax-devouring government-worker unions.

There will be no reform for years, if ever. The state should put signs on the roads leading into California: “Beware: Severe anti-business climate ahead.”

July 18, 2011



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