Posted Jun 3, 2018 by Martin Armstrong
I have been warning that we are in a battle to the death against the socialists. The West Coast is becoming the place to leave as fast as you possibly can for any business. There are already companies starting to migrate from Silicon Valley to Texas. The migration has begun. More and more Tech firms are setting up shop in Austin Texas. We are starting to see Tampa also perk-up. The advantages of both places have been that they “fit” the non-establishment atmosphere.
The socialists in the West are just going nuts. You have Seattle taxing $275 per employee to shelter “homeless” of which many are aliens. We have Portland all upset over the “inequality” of income so they want to bring the “rich” down to the same level of the “poor” to make it fair rather than raise the poor. Strange how they always get that one backwards. Lawmakers in Portland, Oregon have decided to attack the rich by imposing a business-tax on firms with extreme CEO-to-worker pay ratios They will punish companies for paying CEOs too much money. The new tax ratios are:
- 10% Tax on firms with a CEO-to-Worker ratio over 100-to-1; and a
- 25% Tax on firms with a CEO-to-Worker ratio over 250-to-1.
So in other words, if a company is in trouble and brings in someone to straighten out the firm and he is paid 250x that of an average worker, then they want to tax the firm 25%. The West Coast is just going nuts. As the funding for all their socialistic dreams and government pensions, of course, all combine to leave huge deficits, they are turning to “justify” raising taxes pretending they are fighting a new moral cause.
When I was restructuring companies and helping those who wanted to establish a base inside the EU for the coming Euro, those firms who needed skilled labor in manufacturing I placed in Britain. If they needed the best tax deal and were not concerned about a manufacturing base, I placed them in Ireland. That is how I came to know Prime Minister Margaret Thatcher. She wanted to meet the guy who was sending all these companies into Britain.
There was no a single company I placed in France because the unions were crazy. On a strike, they actually kidnapped the CEO of Goodyear until they got their demands. Socialists are always violent and they justify their violence by pointing to other people’s money they want like any thief in prison. The German taxation was also nuts. The taxes a company had to “contribute” to Employee’s benefits was 40% more than Britain.
So you see, I was paid to do the best deal for my clients. That was my job. Today, I would NOT place any company in California, Oregon, or Washington. My recommendation is to get out before they impose an EXIT TAX like New Jersey or charge you criminally for wanting to leave as they proposed to do to Amazon.