Toyota's plan to close its Torrance headquarters and ship 3,000 jobs to a Dallas suburb has triggered a new round of hand-wringing among those who see business-friendly Texas gaining at the expense of regulation-choked California.
Was Toyota's Move to Texas Because of Lower Taxes – or Location, Location, Location?
Texas Gov. Rick Perry credited his state's low taxes and hands-off policies. California lawmakers and business lobbyists said the Golden State must unravel red tape and increase incentives if it hopes to compete for jobs. The trouble is that taxes, regulations and business climate appear to have had nothing to do with Toyota's move. It came down to a simple matter of geography and a plan for corporate consolidation. And in the big picture, California's and Texas' economies are growing at a similar pace, with corporate relocations — in either direction — representing only a tiny slice of job growth in both states.
"It may seem like a juicy story to have this confrontation between California and Texas, but that was not the case," said Jim Lentz, Toyota's North American chief executive.
Was Toyota's Move to Texas Because of Lower Taxes – or Location, Location, Location?
Texas Gov. Rick Perry credited his state's low taxes and hands-off policies. California lawmakers and business lobbyists said the Golden State must unravel red tape and increase incentives if it hopes to compete for jobs. The trouble is that taxes, regulations and business climate appear to have had nothing to do with Toyota's move. It came down to a simple matter of geography and a plan for corporate consolidation. And in the big picture, California's and Texas' economies are growing at a similar pace, with corporate relocations — in either direction — representing only a tiny slice of job growth in both states.
"It may seem like a juicy story to have this confrontation between California and Texas, but that was not the case," said Jim Lentz, Toyota's North American chief executive.
