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California Worst State to Do Business

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California's economic condition began to rot and decay even before Gavin Newsom took over as Governor in 2019. Between 2018 and June 2021, 272 large companies divested their assets and relocated their headquarters to other states.

In the last six months alone, 74 multi-billion dollar corporations have left California, including Tesla.Tesla CEO Elon Musk cited the rising cost of housing in the Bay Area as a factor in moving headquarters from Palo Alto.

"It's tough for people to afford houses, and people have to come in from far away," Musk said at the company shareholder's meeting, where he announced the move, according to CNBC. "There's a limit to how big you can scale in the Bay Area."

Data was taken from the Hoover Institution of Stanford University report.

Among the factors contributing to the exit from California, the Hoover Institution's study cites 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.

Many refugee company owners considered Texas to be the most favorable state for doing business. 24 and 42 companies have moved their headquarters to the Republican state.

Image: Patrick Nouhailler / Flickr

Author: Usa Really