Thursday, November 17, 2005

California Loses Nissan

This kind of news drives me crazy. Companies are fleeing the state like crazy to avoid the oppressive business environment in California. Not only are they leaving, many companies that would have otherwise been formed in California are starting up in other states. See how keeping taxes low can bring in more tax revenue? I know, it’s hard for some of those on the far left to comprehend, but in this specific example Tennessee will now happily collect all the tax and real estate revenues from Nissan North America. These are tax revenues that could have stayed right here in sunny California. Do you think the people at Nissan really want to live in Tennessee? Tennessee will also get a huge influx of highly educated people to add to their state, not to mention the fact that other companies will likely follow suit and pack their bags for Tennessee. The benefit to Tennessee is tremendous. Where I think Nissan takes a gamble is in their ability to recruit future employees, and to replace those that were lost in the move. I’m guessing they’ll have some extra money to pay in salary, since they’re saving so much in taxes, not to mention the cost of living is so much lower there – I think Nissan will do just fine.

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