Texas’ Tax Advantage Is All About Individuals, Not Business Taxes

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Companies moving from California likely won’t see their own tax bills shrink, but executives and employees could pay less

The announcements have highlighted the vastly different tax and regulatory systems in the country’s two most populous states. California relies more on taxing personal income, particularly of high-income households, and operates a growing regulatory structure. Texas leans on more regressive property and sales taxes and boasts a more laissez-faire environment. The biggest difference: High-paid executives who move can see their state income-tax bills go from 13.3% to nothing.

But corporate investors hoping for big tax and other savings may need to temper their enthusiasm. Business-tax considerations are likely to prove secondary at best, tax and economic-development experts say. They are dwarfed by the allure of more-affordable housing, lower cost of living and lighter regulatory burdens.

For companies, much of the difference between California and Texas boils down to ease and cost of hiring—not just now but down the road.

 

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Are you sure about that, WSJ? prageru thewillwitt

Maybe Texas will turn Blue and start contributing instead of being a tax burden on the rest of us.

Yeah, f**k your lies... too many people and businesses have left CA for this to be an accurate picture of reality

This is all BS. A state has to finance it's activities one way or another. The analysis should be how efficiently are those services rendered and do they benefit society as a whole.

Gonna be sweet for Elon when he sells some of his portion of his 1000% overvalued company.

thanks for this news

Isn’t that enough?

I don't think CA is going to overlook all those options granted while Execs were located in CA. You can't escape the long arm of the tax man...

FYI: Germany just locked down.

Then again public companies have, for a long while now, been run more in the interests of management then in the interests of shareholders or, God forbid, in the larger interests of society.

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