‘California’s stifling taxes, regulations and environmental mandates won’t be revamped to more reasonable levels anytime soon’

A group of California business
people gather last month at a confab hosted by the San Gabriel Valley Economic
Partnership to discuss the challenges of operating in the
state. What’s the takeaway in a news story about the meeting?
“Cynthia Kurtz, president and CEO of the San Gabriel Valley
Economic Partnership, acknowledged that California’s stifling
taxes, regulations and environmental mandates won’t be revamped to
more reasonable levels anytime soon.”

Jesus fucking Christ. Why not just throw in the towel, already?
Or at least load up the trucks and head for the state line.

The rest of that
San Gabriel Valley Tribune story is just as cheery as
that quote above suggests.

When asked how California’s regulations are affecting their
operations, Mike Mulhausen, president of California Custom Fruits
& Flavors, was quick to respond.

“Since 2009 our workers comp insurance has gone up 300 percent,”
he said.

Strict regulations, high taxes and tough environmental laws have
made day-to-day operations increasingly costly and tough to
navigate.

That was the consensus of a group of local business leaders who
met Wednesday in Walnut to discuss the challenges they face.
…

Wayne Ratkovich, president and CEO of The Ratkovich Co., said
construction projects are frequently bogged down by California
Environmental Quality Act (CEQA) regulations and the litigation
that often follows. His company’s mission is to profitably build
developments that improve the quality of urban life.

“It’s had a dramatic impact on the ability to build facilities
that are needed,” he said. “It’s rare to find an institutional
investor who will invest in California condos because of all the
litigation.”

Sounds like a great environment for masochists—which might well
be a good description of those who continue to bang their heads
against the wall if they sincerely believe “that California’s
stifling taxes, regulations and environmental mandates won’t be
revamped to more reasonable levels anytime soon.”

That low opinion of the California business climate isn’t
confined to a room full of depressed busines executives. Chief
Executive magazine has ranked California as the
single worst state in which to do business for ten years in a
row. The magazine quotes a CEO saying, “California’s attitude
toward business makes you question why anyone would build a
business there.”

The Tax Foundation isn’t quite so harsh; it puts
California at 48 out of 50 in terms of state business tax
climate—New Jersey and New York fare worse. “The states in the
bottom 10 suffer from the same afflictions: complex, non-neutral
taxes with comparatively high rates.”

Forbes is less tough still, putting California at 39—thought
that’s 43 for regulatory environment. The upwards adjustment seems
to be largely due to an optimistic perception of growth prospects
in what remains a ginormous economy with lots of venture capital
for those willing to stay put.

But those who do stay put might want to keep an exit option in
mind. The state just imposed
new regulations on farmers markets, of all things. That’s after

tightening the screws on the contracting industry. State
officials also see opportunities coming up to
make “temporary” tax hikes permanent.

That should do wonders for the business environment.