Toyota to Texas: California Loses Yet Another Business | How Money Walks…

11 Мар 2015 | Author: | No comments yet »
Toyota Project Go

Toyota to Texas: California Yet Another Business

Count among the growing list of relocating from California to

Over the weekend, it was announced the Japan-based automobile manufacturing would relocate its U.S. headquarters from Torrance, to Plano, Texas (a suburb of Given that the Golden has been home to Toyota Corp. since 1957, the to relocate some, if not all, of the California employees comes as a surprise and a dramatic blow to in Sacramento.

But for those living of California, is this move that big of a surprise? The answer be a resounding “No.” Here’s

According to the Tax Foundation. California’s state and local tax burden of percent is the fourth-highest in the nation. the Golden State also the tenth-highest corporate income tax percent), levies the highest income tax rate (13.3. and ranks 48 th in State Business Tax (a generous ranking, considering Executive Magazine’s annual Worst States for Business ” has placed California dead for the past several years.

Not a CEO or top earning at least $1 million per That’s all right, as California has tax brackets for all types of earners.

On average, based on data the Bureau of Labor Statistics. a manager in the Los Angeles, California Statistical Area (MSA) $129,050. A sales manager at earning that amount in salary, for instance, would be in the state’s sixth tax bracket an income tax rate of 9.3 percent and a tax of over $12,000 per year. And before factoring in the federal tax rate of 25 or 28 percent, depending on status. However, the move to would allow this manager to see his or her earning potential due to the Lone Star State’s of an income tax.

According to –a project of the Center – a 35-year old married manager with one dependent earn over half a dollars more in his lifetime to this corporate relocation, he retires at the age of 65. From an employee the move from California to will allow for an increase in lifetime earning potential. The is true for Toyota as a corporation.

month, when the company its fiscal year results, is expected to report a record trillion ($18.3 billion) of net With 2.24 million and light trucks sold in the last year (roughly units fewer than the number of 2.62 million in forecasts have Toyota’s and revenue continuing this trend. By remaining in California a combined corporate income tax of 43.84 percent and total tax of $8.02 billion ($1.62 of that total will go to tax collectors), Toyota can only to see more of its profits go directly to the – while the move to Texas see Toyota paying no state income tax. This the car manufacturer can continue to grow and its operations without the state a penalty on its success.

While lawmakers in Sacramento and California groups such as the Budget Project are busy the top percent of earners won’t the state due to high taxes, the that employ middle-class men and are fleeing the Golden State of these same high Toyota Motor Corp. – manufacturing plants in Kentucky, and Texas, to name a few – is just the corporation making the move California to low-tax, business-friendly Under Governor Perry’s Texas has seen more 50 businesses, including Campbell’s make this move they know Texas’ economic policies and limited regulation gives them the to prosper and, in turn, their respective employees to do the

April 29, 2014 at 5:26 am

Toyota Project Go
Toyota Project Go


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