While people are flocking from crowded cities to the wide open spaces of Texas due to oppressive regulation and Covid related lockdowns, companies have begun to follow suit. Dozens of corporations have already fled the oppressively high corporate tax rates of California, New York, and Illinois for greener and more free pasturers.
“Texas just provides such a great opportunity for corporations to keep all of their hard-earned money,” says Michael Perez, the SVP of Corporate Strategy at HP. His company recently announced plans to relocate its headquarters from Silicon Valley to the Houston area due to the competitive tax rates, lower rents and because ‘Gavin Newsome is a Clown’ which was a direct quote.
Other tech companies have followed in HP’s footsteps on their quest to pay as little in taxes as possible. Ryan Arch, CEO of ventured-backed media company Lightning Labs, plans to move his company from Venice Beach, California to Austin, Texas.
“We were paying something like a 1.2% effective tax rate in California, which is just insane,” Arch said over Snapchat message. “Venice’s streets were littered with human feces and needles – the city should have been paying us to work there. Sure the scenery is nice but how can you compete with sub 1% taxes? You can’t plus Elon Musk is moving to Texas so we’ll look dumb if we don’t.”