:: TOYOTA SAYS, ENOUGH :: Toyota announced last week that it is leaving California and relocating to Texas. In so doing it follows suit of its Japanese auto manufacturing brethren, Nissan, which left the Golden State for Tennessee in 2007. The move will kill off close to 4,000 jobs. The city of Torrance (where the Toyota HQ is located) calculates that it will lose close to a $500M dollars in annual property tax revenue alone. The state of course will lose tax revenue too. All those families --who pay taxes, buy groceries, gas their cars, occasionally go out to dinner, etc.-- gone. Somehow these people dont get it. They completely incapable of looking at Detroit et. al. & coming to the conclusion that, we cant tax ourselves to prosperity. My crystal ball on these situations has been 100% correct. The tax base will wither as a result of this exodus; with not enough coming in to pay the bills, the city & state will vote to raise taxes on the remaining residents until enough of them also say, enough, and move out too. And then, with the harsh reality of insolvency staring them in the face, 1 of 3 things will happen; 1) we fix this by restructuring our union/pension payment obligation (which is whats breaking the back of nearly all these states & municipalities) 2) we declare bankruptcy & leave creditors holding the bag 3) we run to Washington for a bailout & expect ALL U.S. citizens to bear a portion of the pain for our out-of-control liberal policies - whether they live here or not Just you wait & see. forbes/sites/rexsinquefield/2014/05/02/toyotas-tax-exodus-sends-shockwaves-through-job-impoverished-california/
Posted on: Mon, 19 May 2014 14:08:40 +0000
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