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Hmmm, sounds more like a blog entry that a question, but I will give it a shot. I'm a liberal leaning democrat on social issues , but I recognize the importance of small business and tend to be more conservative when it comes to business matters. In a nutshell, it all comes down to how easy it is for someone to start a business and how much regulation and added taxes they will have to deal with. Less regulation and restrictions means more jobs that spur the economy. In Texas, as long as I am not going into a profession that requires a state license (doctor, attorney, cosmetologist, Realtor) etc. I can pretty much open a business and start operating it. If its a business that requires me to collect sales taxes, call the state comptroller and that's the extent of having to deal with any bureaucratic policies or requirements. How about CA, how east is it to open a business. What does it cost, how many layers of government do you have to go through to get the permission and go ahead to open a business. More importantly, how expensive does your product or service have to be to offset all the taxes you have to pay. We are one of 3 states that do not have a state income tax. Many companies have moved operations from CA to TX because they could not afford to operate their. Applied Materials moved most of there operations to Austin out of San Jose because of increased taxes and regulation. CA is still a a great place and it is important for it to prosper. But, CA is responsible for its own downfall and not Bush. I"m no fan of Bush, but he did not have anything to do with CA falling into its deep deficit. Your Governor and commander in chief is responsible. Its all his baby. How about real estate, TX is feeling the effect of the national economy yes, but you will be hard pressed to find a market where there has been any significant decrease in market value. Why, we were never appreciating 3 to 5% a month like in CA. The most progressive markets were only appreciating 7 to 9% per year. That is less than 1% per month. In CA, 350K gets you barely a 2 or maybe a 3 bedroom home in a so so neighborhood. In TX, for 350K you can get a custom built Ranch style home on 1 acre of land with over 2500 square feet, with guest quarters and an in ground pool. In most markets, the average sales price of homes is less than 140K and in my market you can get a nice 30 year old home for around 100K. Hows that for making your dollar go further. Texas has not only survived, but has grown because we recognize the importance of economic development, job creation and limited legislation. Until CA reigns in its spending, limits its taxing and makes its state more business friendly, it will continue to suffer and lag behind.

Source(s)

TX businessman and Realtor

by dogaling

5 months ago

Asker's Rating: 

I lived in CA for the last 20 years... love the weather, love the scenery and am scared to death of what is going on in the last year or two. Because I have been thru the last recessions and this one is so different that even I, the perpetual optimist, am losing my confidence here. We will make it... but I do think California will have a different look and feel when this is over. At least we will have more realistic real estate prices in the end?

by Reena- 5 months ago

And what does all that have to do with renting?

by towanda- 5 months ago