Elon Musk, Inventor, investor and capitalist, has been calling to leave his home state of California for the past 25 years. He went to Texas.
“For me, I went to Texas,” Musk told Matt Murray, editor-in-chief of the Wall Street Journal, as Fox Business announced Tuesday. CEO Council Summit. “I’ve got a starship upgrade here in South Texas where I am now. Giga Texas As well as. “
With Tesla’s share price has risen, Kasturi became the second richest man in America (and in the world).
Moving to Texas means he will increase his chances of avoiding the 13.3% state income tax on the capital gains he makes in the event he sells. Tesla stock Or receive a bonus – even if the California Owners Tax Board is known to consistently follow income taxes on state taxes. Texas has no personal income tax.
He is not alone. What started out as a ploy could turn into a flood.
The change of Kasturi’s personal address quickly followed Hewlett Packard Enterprise Moves from Silicon Valley to Houston, Joe Lonsdale, founder of Silicon Valley (Fruit & Adipar) and venture boss and innovative millionaire podcaster moving to Austin Joe Rogan Moving from Los Angeles to Austin.
And, according to U.S. Census Bureau, Not only the rich and famous who leave California. Every year for the past 15 years, about 100,000 more Californians leave the state than other Americans move, with Texas, the most popular destination, consistently being 1,300 miles away.
Commenting on California’s business environment, Musk likened Golden State to a sports team that has been winning for a long time, and its players are content to take things in stride and “then they won’t win the championship.”
The CEO of Tesla and SpaceX noted that he still has a large corporate presence in California, “Tesla is the last car company to produce more cars in California. SpaceX is the last aerospace company to make even more significant production in California. ”
He drove this point home at the Council Summit of the CEO of the Wall Street Journal on Tuesday, “There were a dozen car factories in California. California was the center of space production. My companies are the last two places. ”
I can personally attest to Muskin’s claim. I worked in the aerospace industry in California for 13 years before being elected to the state legislature in 2004. By the time I left in 2010, the headquarters I was consulting had vacated the state. The next year, I moved to Texas.
Tesla looked to Texas to start Creates a new gigafactory this summer, Breaking the floor outside Austin in a few weeks. A similar initiative in California would have cost five years to build millions of dollars in environmental lawsuits brought by trade unions – a common practice in California known as the “Green Mail”.
Musk criticized California’s harsh regulatory climate, saying “you have a Redwoods forest, small trees can’t grow”. He recommended these results in government-implemented monopolies and bipolar because startups are choked with high regulatory compliance costs.
California must “get out of the way” of innovators, Musk said.
Texas Gov. Greg Abbott often tells businesses about the benefits of going to Texas. Business relocation experts say companies can relocate 32% of their operating cost Moving from California to Texas is largely due to tax and regulatory savings, but also lower energy costs, land costs and housing costs for staff.
Last May, Musk threatened to expel Tesla from California in connection with conflicting COVID-19 restrictions that closed Tesla’s factory in Fremont, in the San Francisco Bay Area. Musk called the health orders “fascist” and said that the orders to stay at home were “forcibly imprisoning people in their homes.”
Soon, Democrat San Diego California state legislator Lorena Gonzalez tweeted “F * ck Elon Musk.”
In Muskin’s move to Texas, he not only gets the last word, but also seems to follow in the footsteps of one of the most famous early Texans, Davy Crockett, after losing the re – election campaign for Congress in 1834: “இருக்கலாம் You may all go to hell, I will go to Texas. ”
Kasturi may add today, “And save hundreds of millions in my income taxes.”
Chuck Divor He is the Vice President of the National Initiatives of the Texas Public Policy Trust, served as a member of the California State Legislature from 2004 to 2010 and is a retired Reserve Lieutenant Colonel of the U.S. Army.