[Ed. – Astonishing that the worst regulatory and taxation conditions in the nation (California ranks in the bottom two for both) are driving businesses out. Not to mention the unaffordable cost of living for workers.]
Everyone seems to know someone who has packed up and left the once-Golden State. But two Stanford researchers looked past the anecdotes to find “a damning trend.”
The study also reports that the rate at which businesses are leaving the state is rapidly accelerating. For the first six months of 2021, the rate is nearly twice as high as it was last year. That means more businesses have already left California this year than in all of 2020.
The authors note that this count is, if anything, an enormous underestimate. Many small businesses exiting the state do not receive media coverage and are not required to file compliance reports …
Why are businesses leaving? The authors … cite “high tax rates, punitive regulations, high labor costs, high utility and energy costs, and declining quality of life for many Californians which reflects the cost of living and housing affordability.”