California has a governance problem. However, the issue of companies leaving is not specific to that problem. Although some noticeable companies have left the state, the taxes they paid hardly put a dent in the $4trillion+ California economy. In any given year companies open and close all over the USA. Tens of thousands of companies with a long list of reasons open and close. Companies have also moved to the state to access one of the best educated and skilled workforces in the USA.The loss of a corporate headquarters does not mean that there is an absolute loss of jobs or tax revenues because the company will keep offices and branches in the state. The reality is that thousands of companies have NOT left the state. The data offers a very different picture. The Public Policy Institute of California concluded that; Relocations are a small fraction of overall headquarter activity. Between 2011 and 2021, far more headquarters launched (7,250, 17% of companies headquartered in California) and closed (12,700, 30%) than moved out of state, with no clear upward or downward trends. Focusing solely on relocations overlooks the range of positive and negative forces driving headquarter activity and can misrepresent businesses’ desire and ability to operate headquarters in California and the broader impact on jobs.
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