More Companies Join the ‘Great Migration’ to Red States

[Hoodat]

More Companies Join the ‘Great Migration’ to Red States

Blue states believe their abortion policies can bring companies back

Kevin Stocklin   |  July 2, 2022  |  Updated: July 6, 2022

Amid predictions of a political “red wave” in the upcoming midterm elections, an economic wave has been building for years—with no end in sight—as companies flood out of blue states and into red states.

As a result of its political divisions, the United States appears to now be dividing itself into prosperous, high-growth states and states that are suffering a chronic decline. But Democrat-run states believe that their abortion policies could be a key factor in attracting companies back.

Caterpillar and Citadel, which announced their exit from Illinois in June, are only the latest firms to leave high-tax, high-regulation states. Tesla, Hewlett-Packard, Oracle, and Remington are also among the hundreds of companies flocking out of California, Illinois, New York, and New Jersey to business-friendly places such as Texas, Florida, Arizona, and Tennessee.  .  .

https://www.theepochtimes.com/more-companies-join-the-great-migration-to-red-states_4572422.html

[Hoodat]

States have been able to attract companies by cutting taxes, reducing red tape, and establishing right-to-work policies. In 2013, North Carolina passed a landmark tax reform package to cut corporate and personal income taxes. The business income tax there is now 2.5 percent and will be phased out entirely over the next several years.

Contrary to expectations that states would bankrupt themselves by cutting taxes, an influx of companies and new residents often boosts state revenues from property taxes, sales taxes, and personal income taxes, even when the percentages are reduced.  .  .

.  .  .  North Carolina’s latest budget included a deal to phase out corporate income taxes while also giving teachers a raise and even padding its “rainy day fund,” according to Schalk.

“North Carolina has been able to do that because not only have they been bold on lowering taxes, but they’ve also gotten the spending side under control,” he said.

[Hoodat]

And when companies move in, they bring intangible benefits with them as well.

“Any sort of civic organization loves it when they hear that a blue-chip company like Caterpillar is relocating to our state,” Hamer said. “It means these executives are going to be serving on all sorts of different boards of directors, the local art museum, opera, or the chamber of commerce. When companies relocate their individuals, they become deeply ingrained in the community. They contribute time and treasure to activities that make the community more vibrant.”

The reverse is also true for states that are losing businesses and population, creating a vicious circle where continuously hiking taxes fails to bring in more revenue because the tax base gets depleted and quality of life suffers.

[Hoodat]

@mystery-ak  - Illinois ping

According to a report based on IRS data by Wirepoints, an Illinois-based economic research organization, the cost of losing companies and people is stark for states such as Illinois, which has seen decreases in its population for 21 straight years.

Since 2000, that state has lost a total of $535 billion in income that moved away, which equates to about $25 billion in lost tax revenue during that period, and $4 billion in 2020 alone. Illinois’ problems include a loss of 114,000 residents in 2021, a string of 21 consecutive years of state budget deficits, a $313 billion deficit in public pensions, and the second-highest property tax rates in the country.

“Illinois is stuck in a vicious downward spiral it can’t hope to escape from without fundamentally changing how it governs,” the Wirepoints report reads. “Structural property tax reform, reductions in pension debt, slashing units of local government—the state needs to do all these things if it wants to convince Illinoisans to stay and persuade other Americans to move in.”

Reducing violent crime would also help. Escalating crime was reportedly a factor, one among many, in Citadel’s decision to leave Chicago for Miami. Ken Griffin, the hedge fund’s CEO, had been one of Illinois’ richest residents and had given more than $600 million in charitable donations to educational, cultural, medical, and civic causes in the state.

[catfish1957]

@mystery-ak  - Illinois ping

Believe I saw recently that Catepillar is bolting, after being there (Illinois) forever.

Only downside is these blue state refugess bringing (polluting) their left wing ideology and voting habits with them. 

[mystery-ak]

Believe I saw recently that Catepillar is bolting, after being there (Illinois) forever.

Only downside is these blue state refugess bringing (polluting) their left wing ideology and voting habits with them.

So far the Cat plant is still in Decatur and even expanding..it's corporate offices are leaving Il

Rumor has it State Farm hdqtrs in Bloomington is leaving too...

We need a new governor asap...

[DefiantMassRINO]

Why would a company chose to stay in a state where government officials are trying to put them out of business?

Smith & Wesson had to leave Massachusetts.  I'm surprised they were able to stay as long as they did.

[sneakypete]

I don't see this as a good thing because the companies will move south and bring their "yankee politics" with them,as well as many of their yankee employees,who will IMMEDIATELY start demanding their new state pass laws like their old states had.

I have lived in southern resort cities and seen this for myself. The first few months they all want to talk about how great where they live now is compared to where they used to live,but by the years end they are demanding additional gun laws,additional zoning restrictions,etc,etc,etc.

I say we should keep the bastards out and let them stew in the piss pot they created up north.

I guess it would be ok to hire a few for seasonal work as laborers in the summer,but only if they are deported in September.

[DefiantMassRINO]

Masshole Democrats migrated to New Hampshire, and turned the state from solid red to purple.  Think New Hampshire Democrat Senators, Jeanne Shaheen and Maggie Hassan.

All them Yankees moving to Florida from the Northeast are going to bring their support for Democrat policies with them.

[sneakypete]

Masshole Democrats migrated to New Hampshire, and turned the state from solid red to purple.  Think New Hampshire Democrat Senators, Jeanne Shaheen and Maggie Hassan.

All them Yankees moving to Florida from the Northeast are going to bring their support for Democrat policies with them.

@DefiantMassRINO

You can count on it. They will no doubt celebrate their new freedoms vocally the first couple of months,but they will be demanding Florida be just like Philly or NYC within a year,but without the cold.

[Wingnut]

Jobs and house values – both tied to Illinois’ nation-leading state and local tax burden – are prompting people to leave. Rather than fix those issues, state leaders handed Illinoisans a proposal to give public worker unions the protection of the Illinois Constitution. Amendment 1, masquerading as a “workers rights amendment,” would guarantee a $2,100 property tax hike for the typical Illinois homeowner were voters to approve it Nov. 8.

Higher property taxes for their employees is not what will stop a fourth big business from exiting Illinois.