Raytheon splits California

Raytheon Tomahawk_Block_IV_cruise_missileMay 7, 2013

By John Seiler

The California economy seems to be doing well. Unemployment is down. The governor’s May Revise of the budget surplus, due next week, likely will report an unexpected $4.5 billion in extra revenue.

Except that companies keep leaving the state. The latest from the Dallas Business Journal:

Raytheon Co. plans to move the headquarters of a $6 billion business unit from El Segundo, Calif. to McKinney, the company said Thursday.

“Raytheon’s Space and Airborne Systems, one of the company’s four business units, will move in an effort to streamline operations, increase productivity and achieve stronger alignment with its customers’ priorities. The Waltham, Mass.-based electronics, mission systems and defense technology parent company already has a presence in McKinney.

“The move will bring jobs to North Texas, said Dave Desilets, a Raytheon spokesman. However, he was unable to provide details on the number of jobs.

“‘The number of headquarters staff is relatively small when you compare it with our existing employees (in North Texas),'”Desilets said.

“In North Texas, Raytheon has 8,000 employees.

“Real estate sources say the move will bring about 170 jobs, which have an average salary of $250,000.”

A $250,000 average salary. That means a lot of those jobs would be higher than $250,00 a year and so would have been paying the “millionaires’ tax” from Proposition 30, which actually starts at $250,000.

Remember how Gov. Jerry Brown said “the rich should pay their fair share”? Well, in expensive California, $250,000 a year doesn’t make you rich. And all those 170 jobs no longer will be paying taxes in Taxifornia, unless they vacation at Disneyland.

Although things seem to be going well now with the California economy, we’ll see.

8 comments

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  1. Alan Walsh
    Alan Walsh 7 May, 2013, 02:15

    The California economy is not doing well. The governor’s “budget surplus” is an accounting trick. The state has become a bloated welfare state; with 20% of all welfare recipients nationally, some of the highest taxes, and a socialistic government that is hostile to business. Businesses are leaving, and so are citizens; for the first time in the state’s history. Will the last producer please turn out the lights as they leave?

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  2. Bruce Broughton
    Bruce Broughton 7 May, 2013, 07:33

    Putting a sunny face on the facts don’t make it true. California’s economy is failing. California’s inbred Democrat legislature can’t stop spending long enough to see the billions of lost income from corporations that leave the state. The legislature, can’t stop passing social welfare bills, and see how many productive people flee to states where they can exist without being sucked dry by the government. California is the best example of what socialism looks like, and it isn’t very good.

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  3. stolson
    stolson 7 May, 2013, 10:05

    I guess the UN and NWO geniuses decided Calif. will become Mexico.,and slide into 2 classes–richer along the coast and much poorer inland. No middle.
    Third world conditions, with less people working and more dependents.
    Large farms only for $$$ control, no energy production for CA to keep outside $$$ control, water scarcity enforced, high taxes, high regulation, who could complain???

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  4. @SoquelCreek
    @SoquelCreek 7 May, 2013, 16:03

    It will be interesting to see what happens to those $250,000 salaries.

    The cost of living is less in Texas. A $250,000 salary in “Los Angeles/Long Beach” is worth as much as a $182,000 salary in Plano, TX (the closest city listed in the cost-of-living calculator.
    http://money.cnn.com/calculator/pf/cost-of-living/

    If they get to keep their $250,000 average salary, then moving to Texas is like a 37% pay increase! Even better in some ways because your savings and investments aren’t subject to 10.3% or higher state income tax like they’d be in California.

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  5. Barb
    Barb 8 May, 2013, 08:02

    Yes, SoquelCreek!

    “CEOs are well disposed to Texas, and it’s not hard to understand why. Fifty-two Fortune 500 companies now call Texas home. Fifteen Texas companies went public in 2011, making the state the hottest IPO market in the nation. Austin has become one of the fastest growing tech hubs. (The A5 chips in Apple’s iPhones and iPads are made in Austin.) Young programmers and engineers can actually afford to live well in Austin, where the housing cost index is 300 percent lower than in San Francisco. Texas job creation has outpaced the national average, too. Writing in Investors Business Daily, Wendell Cox commented that, “the number of jobs in Texas has grown by a truly impressive 31.5 percent since 1995, compared with just 12 percent nationwide, according to BLS data. Texas lapped California, an important economic rival and the only state with a larger population.” In addition, Texas jobs pay well and employees there fared better than the rest of the U.S. from 2002 to 2011, according BLS data. Adjusted for cost of living, Texas’ per capita income is higher than California’s and nearly as high as New York’s, observes Cox, who is principal of Demographia, a consultancy.”

    From Chief Executive Magazine

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  6. Barb
    Barb 8 May, 2013, 08:09

    Let me just add that California has now been proclaimed as the worst state to do business in!

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  7. @SoquelCreek
    @SoquelCreek 8 May, 2013, 10:14

    Barb,

    Just to clarify, on a nationwide survey of CEOs, California was ranked as the worst state in which to do business — for the 9th consecutive year.

    CHART: Chief Executive Magazine: Five Worst States for Business (2005-2013)
    http://1.bp.blogspot.com/-WyJXsYTNB9M/UYqHCRwDeGI/AAAAAAAACco/eQS7Jb5WEjs/s1600/Chief+Executive+Magazine+Best-Worst+States+for+Business+2013.png

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  8. Barb
    Barb 8 May, 2013, 16:27

    Yes SoquelCreek, you’re right! I guess I was just looking from the perspective of the current stats that just came out. But I stand corrected! Thanks!

    Reply this comment

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Jerry BrownJohn SeilerProp. 30Raytheon

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