{"id":2008310,"date":"2023-08-22T15:52:01","date_gmt":"2023-08-22T19:52:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-exodus-cost-1-trillion-in-financial-firm-flight-alone\/"},"modified":"2023-08-22T15:54:40","modified_gmt":"2023-08-22T19:54:40","slug":"california-exodus-cost-1-trillion-in-financial-firm-flight-alone","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-exodus-cost-1-trillion-in-financial-firm-flight-alone\/","title":{"rendered":"Financial firms fleeing California in the exodus have cost the state a staggering $1 trillion."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornia-exodus-cost-1-trillion-in-financial-firm-flight-alone%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2008310&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>The Cost \u2063of Financial Companies Leaving California<\/h2>\n<p>A new \u200cBloomberg analysis of over 17,000 corporate filings shows \u200cthat the exit \u2063of financial \u2062companies from California is estimated to have cost around $1 trillion when \u200bmeasured by assets \u200bunder management.<\/p>\n<p>The\u2063 flight of individuals and businesses from California has long grabbed\u2062 headlines, with\u2063 many of those\u2064 fleeing the Golden State \u2064citing factors like red tape and high\u2062 taxes.<\/p>\n<p>Now, the latest analysis from Bloomberg\u2064 has put a \u2062dollar\u200b figure on one segment\u200c of businesses leaving California, namely \u2062financial firms.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/us\/cumulative-impacts-from-california-exodus-costs-state-nearly-500-billion-will-get-worse-economist-5340099\">Cumulative Impacts From \u200cCalifornia \u200cExodus \u2063Cost \u2063State Nearly $500 Billion,\u2064 Will Get Worse: Economist<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">6\/17\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/us\/cumulative-impacts-from-california-exodus-costs-state-nearly-500-billion-will-get-worse-economist-5340099\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/epochtv\/economist-explains-why-california-exodus-matters-jim-doti-5322603\">Economist\u2062 Explains Why California Exodus Matters | Jim Doti<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">6\/8\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/epochtv\/economist-explains-why-california-exodus-matters-jim-doti-5322603\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The analysis shows that from the beginning of \u200b2020 through March 2023, over 370 investment companies with some $2.7 trillion under \u200dmanagement \u2062moved their headquarters to\u2064 a new state. The\u2064 vast majority of those leaving were relocating from California and\u200b New York, with an estimated\u200d value \u2062of assets \u200bunder management at around $1 trillion each.<\/p>\n<p>Texas was the top destination for\u200c headquarter relocations from\u200c California, \u2064according to the analysis, with companies attracted by factors like no state income \u200btax and\u2063 lower\u2063 living\u2063 costs for employees.<\/p>\n<h2>50\u2064 Percent of Businesses Thinking of Leaving<\/h2>\n<p>It&#8217;s not\u2063 just finance firms that are leaving but all manner of businesses, and many of those staying put for \u2064now \u2063are thinking about an exit.<\/p>\n<div class=\"shortcode\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\u201cAs \u200cmany\u2063 as 50 percent of CEOs \u200care suggesting they\u2019re planning to leave California,\u201d\u2064 Jim Doti, professor of economics at Chapman University, said in EpochTV\u2019s\u200c documentary, \u200d&#8221;<a href=\"https:\/\/bit.ly\/3O1ckzI\" target=\"_blank\" rel=\"noopener\">Leaving California: The Untold \u2062Story,&#8221;<\/a> citing high taxes, regulations, \u200cand housing prices as key motivating factors.<\/p>\n<p>Mr. Doti said it&#8217;s not \u2062just about \u200ca loss of tax revenue.<\/p>\n<p>\u201cThe \u2064greatest loss to a state \u200dis the loss of human capital, not \u2062just jobs or businesses,\u201d Mr. Doti \u200bsaid. \u201cIf graduate students move to \u200dTexas and Florida, it will have a\u2064 negative impact that is\u200c magnified because \u200cwe\u2019re losing our best and\u200c brightest.\u201d<\/p>\n<p>The latest estimate from Bloomberg, which puts\u200b a dollar figure\u200b on one part of\u2064 the exodus, builds on other \u200cdata, such as from the Internal \u2063Revenue\u2063 Service \u200d(IRS), which showed that California lost a \u2062total of $47.1 billion in taxable personal income in 2020 and 2021 as hundreds of thousands of residents left.<\/p>\n<p>According to \u200bIRS data, California lost $29.1 billion in taxable personal income in 2021 as 332,00 more taxpayers left \u200bthe state than entered \u200cit.<\/p>\n<h2>More Businesses Leaving<\/h2>\n<p>A study commissioned by the Los Angeles Area Chamber\u200b of Commerce shows \u200dthat the \u200dnumber of companies\u200c departing California nearly doubled between \u20622012 \u200band\u2063 2019.<\/p>\n<p>\u201cThe \u200cGolden State\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-voters-say-economy-is-most-important-issue-half-disapprove-of-reparation-payments-poll\/\" title=\"Californian voters prioritize economy, half disapprove of reparations: Poll.\">luster appears tarnished<\/a> in recent years,\u201d said the study authored\u200c by economists and academics\u2062 with the Inland \u2064Empire Economic Center. \u201cA seemingly\u200c endless stream of firms is leaving \u200bthe state, citing high taxation, heavy regulation, other business costs, and anything but a business-friendly \u200denvironment.\u201d<\/p>\n<p>For the study,\u2064 CEOs were asked what\u200b they think are the most \u200bsignificant challenges to running a business in California.<\/p>\n<p>The typical immediate\u200c response \u200dto this \u2064question was, \u200c&#8221;California is a\u200b very difficult place to do business,&#8221; the report states.<\/p>\n<p>&#8220;CEOs perceive California to have an anti-business culture, where business is perceived by the\u200b media, lawyers, and politicians at the local and state levels as &#8216;evil&#8217; and &#8216;caring \u2064only about profits,&#8221; according to the report.<\/p>\n<p>Company executives\u2062 feel that the relationship between public and private organizations is &#8220;adversarial&#8221;\u200c rather \u200bthan &#8220;collaborative\u2063 and supportive,&#8221; the report&#8217;s \u2064authors say, making \u200cit hard\u2063 to meet\u200d consumer needs while, at the same time, creating opportunies for business innovation and\u2063 for employees.<\/p>\n<p>\u201cI have dealt with governments around the country, but the most <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-exodus-cost-1-trillion-in-financial-firm-flight-alone\/\" title=\"Financial firms fleeing California in the exodus have cost the state a staggering  trillion.\">business unfriendly adversarial government<\/a> is California,\u201d was \u2063a typical response\u2063 by CEOs,\u200b as cited \u200bin the study.<\/p>\n<p>Another major challenge to doing business in California, as \u2063mentioned by CEOs, was taxation &#8220;which is seen as excessive.&#8221;<\/p>\n<p>This view is\u200b supported by various studies, including one by the Tax\u2062 Foundation, which \u200dranked California #48 in the country on its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/florida-job-growth-rate-6-times-faster-than-the-nations\/\" title=\"Florida Job Growth Rate 6 Times Faster than the Nation's\">state business tax climate index<\/a>, which is based \u2063on a combination of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/schumer-spokesman-celebrates-1-9-trillion-covid-relief-plan-erases-ny-budget-deficit\/\" title=\"Schumer Spokesman Celebrates: .9 Trillion COVID Relief Plan Erases NY Budget Deficit\">individual income tax<\/a>, sales tax,\u2064 corporate \u200dincome tax, property tax, and unemployment \u200cinsurance tax.<\/p>\n<h2>$500 Billion in Lost \u2064Income<\/h2>\n<p>Over 700,000 people left California from April 2020 to July\u2062 2022\u200c to \u200brelocate to other U.S. states, according \u200dto U.S. Census\u200c Bureau data.<\/p>\n<p>The following map released on \u200dMarch 30 by the U.S. Census \u2063Bureau shows net domestic migration for the United States, by county, for 2021\u201322.<\/p>\n<p>Each r<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A recent Bloomberg analysis reveals that financial companies leaving California have incurred an estimated $1 trillion loss in assets under management. The ongoing exodus of individuals and businesses from the state, often attributed to factors like excessive regulations and high taxes, continues to make news headlines.<\/p>\n","protected":false},"author":118,"featured_media":2008311,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2008310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2008310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2008310"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2008310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2008311"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2008310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2008310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2008310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}