Betty, what proof do you have that "businesses are making an exodus from California in great numbers".

Judging from the comments these captains of industry make as they leave for their temporary tax incented new homes, we don't need them around stinking up the place. Note to Genius Entrepreneurs: Texas has blistering hot summers and sub-freezing winters. The humidity is extreme (>90% most of the time) and the schools teach fairy tales as history. Arizona is only slightly better, as the blistering hot summers only keep the temperature above 100 all night, lacking humidity.

Yeah Ricketzzz, lets have our Federal and State policies cause businesses to bolt and get replaced by illegal aliens and have them reap the benefits of easy entitlements here. Yeah, that makes sense. Oh and by the way, while we're at it lets have our governement employees earn more than private sector employees and lets give them ridiculously unaffordable benefits. Yeah, that makes total sense.

I'm not sure, but this could be proof of what the author says,

It recently came out in The Signal that the state of CA is ranked very low in business climate.

How do you get such a ranking, maybe by counting the number of businesses leaving?

Would it be a surprise if business was fleeing a state with a low ranked business climate?

ptavoluteer, I didn't write this letter, but if you're interested start here:

http://hotair.com/archives/2012/04/30/california-by-the-numbers/

What’s interesting about the comments from the LTE writer is that the people who own the businesses are making out great in CA.

From the Franchise Tax Board: https://www.ftb.ca.gov/aboutftb/plans_reports.shtml?WT.mc_id=News_Sidebar_Stats

For 2007:

- the top 1% of income earners take about 25% of all adjusted gross income
- the bottom 50% of all income earners take around 10% of all AGI
- the 4 people out of 1,000 earn $1 million or more

For 1996:

- the top 1% of income earners take about 17% of all AGI
- the bottom 50% of all income earners take around 12.7% of AGI
- 1 person in 1,000 earn $1 million or more

There are more statistics to think about but the trending is that the top 1% gained roughly 47% more income while the bottom 50% lost 21%.

What’s interesting is that looking at tax rate statistics independent of the underlying factors distorts the issue.

As we see above, it’s clear that small business people who own the businesses are doing very well income wise that would make them pay higher amounts of taxes since they take a disproportionate amount of the income.

In 2007: https://www.ftb.ca.gov/aboutFTB/Tax_Statistics/Reports/Personal_Income_Tax/2008_B-3_AGI_with_Accumulated_Percentages.pdf

The top 1% took 29.2% of all ‘taxable’ income (after deductions) while the bottom 50% (median income) took just 9.3% of that income. Again, ‘bottom 50%’ takes just 9% of all income while just 1 person in a hundred takes close to a third . . .

As the wealth advantages of the higher income earners are played out, their advantage politically is ‘concentrating income’ and yet the LTE writer would have you think otherwise. Why is that?

Finally, as the income shifts ‘up’ more people become eligible for safety programs . . .

In any event, I would advise any business thinking to move to Texas to please, don’t let the CA sunshine hit your backside as you leave.

We want businesses that respect the work force and the people that live here in some proportion to their profits made off the same people.

Anyway, we need a more rational taxing system and can’t get it with high income lobbyist dictating the laws that again, per the data, concentrate wealth and create more inequity in our state.

You tell then Indy !!!!!!!

2007??? This is 2013!! Besides, as Mark Twain said in qutoing Disraeli: "There are three kinds of lies: lies, damned lies, and statistics."

The problem is that people who think like ricketzz are the ones running (ruining) this state.

This whole story sounds like nothing but sour grapes about who was elected by the public into office. GET OVER IT AND MOVE ON WITH YOUR LIFE! If you want to make a difference find someone who can be elected and make the changes you want.

2007 isn't recent enough and you quote Mark Twain?

@CastaicClay: Now THAT'S a funny comment. Kudos.

No, I quoted Mark Twain in his quote of Disraeli who made a very astute comment which unfotunately you can't fathom. Perhaps a second reading might help.

And no, quoting only statistics from an earlier better time does not help understand what is happening now.

Capt. Gene, I checked the link you posted. According to that article, 254 business left California in 2011. According to US Census Data here, http://quickfacts.census.gov/qfd/states/06000.html, California had 849,875 non-farm businesses in 2010. That's a loss rate of .000299%

Betty is completely off her rocker about "businesses are making an exodus from California in great numbers".

Actually, it's .0299%. Also from that article were these statistics:

855,200 private-sector jobs lost since the start of the recession a 6.77% loss, Texas gained Texas 139,800 jobs.

Again, I didn't write the letter, so I'm not going to defend the use of hyperbole, but to deny that The Golden State (third from the bottom for business climate) is not a business friendly state is to deny the obvious.

Capt. Gene, to accept that The Golden State maybe the worst for business climate, in the way you suggest, but not recognize that businesses don’t actually leave California because it's a great place to do business, is very short-sighted on your part.

I'm not the one suggesting it, people like the fine folks at California Political News & Views, The Tax Foundation, George Mason University’s Mercatus Center, Small Business & Entrepreneurship Council, Howard Jarvis Taxpayers Association and The National Federation of Independent Businesses are the one's suggesting it. Just a little bit of research goes a long way.

I didn't say anything about immigrants or easy "entitlements". Why do you assume such things? I said that the green grass on the other side of the fence may turn brown. At least here when business is slow you can go outside and enjoy the climate. That's all.

I'd rather be poor in California than rich in Texas. (Done all 4).