US Freedom Capital Blog

Proposed corporate tax hike in California could drive more businesses to Texas

Posted by USFC Team on Apr 24, 2018 2:58:39 AM

An attempt by California politicians to raise the state’s corporate income tax rate will drive more businesses from the Golden State to Dallas-Fort Worth and other locales with similarly business-friendly laws and policies, a top site selection consultant and researcher predicts.

“I’ve got to tell you this has just caused an uproar out here,” Joseph Vranich, president of Irvine, California-based Spectrum Location Solutions, told the Dallas Business Journal in an interview Monday. “If anything is representative of cruel and oppressive treatment, this has reached new levels.”

Vranich was referring to an attempt led by Democratic State Assembly members in California to raise the state’s business taxes in response to President Trump’s federal tax overhaul.

The measure would more than double the state’s corporate income tax rate, giving California the nation’s highest rate of 18.84 percent, up from the current rate of 8.84 percent. The legislators who sponsored the California amendment characterized it as “middle class tax justice” and argued that, given federal cuts in the corporate tax rates, businesses could afford to pay more in California taxes.

The proposed California rate would be three times the current median rate nationwide. It would raise corporate taxes on California companies with revenues higher than $1 million. The state tax hike would be for an amount equivalent to half what they received from the federal tax cut.

Vranich in November 2015 released research indicating roughly 9,000 California companies moved their headquarters or diverted projects to out-of-state locations in the prior seven years, and most of those went to Texas.

Vranich said he hasn’t updated the number of California move-outs since the 2015 report, but he senses growing dissatisfaction in the phone calls he gets from companies considering a move.

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Topics: Taxes, Texas, Corporate Tax, California

New tax law makes Dallas even stronger draw

Posted by USFC Team on Feb 4, 2018 11:54:54 AM
The rich will get richer, thanks to the new tax law, and Texas will become an even better destination.
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Topics: Dallas, Taxes, California, New York

Trump Tax Plan to Benefit Multifamily Residential

Posted by USFC Team on Jan 17, 2018 9:07:18 AM

While the GOP’s recent tax overhaul is widely seen as a gift for the commercial real estate industry, it could chip away at the notion that homeownership is the foundation of the American dream, especially in costly coastal markets.

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Topics: Trump, Taxes, Apartments

The US as a Tax Shelter

Posted by USFC Team on Apr 26, 2017 1:45:14 PM

The co-founder of the law firm at the center of the Panama Papers scandal says the fallout has set off a "thriving" boom in the creation of tax shelters in the United States.

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Topics: USA, Taxes, Tax Shelter

Texas: Beyond Black Gold

Posted by David Gunderson on May 16, 2016 7:30:00 AM

For the entirety of its run atop the Chief Executive Best & Worst States for Business annual rankings, Texas has benefited from high or rising prices for crude oil, and from the savvy and energy of a single, exceptionally growth-minded governor.

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Topics: jobs, Taxes, Texas

CEOs Favor Pro-Growth, Low-Tax States

Posted by USFC Team on May 13, 2016 8:39:05 AM

CHIEF EXECUTIVE CANVASED 511 CEOs across the U.S. asking them to evaluate four or more states with which they are directly familiar. They were asked to rate each with respect to three categories they regard as highly important: taxes and regulations; quality of the workforce; and living environment, including such considerations as quality of education, cost of living, affordable housing, social amenities and crime rates.

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Topics: jobs, Taxes, Texas

The Wealth of Cities

Posted by USFC Team on Mar 25, 2016 3:08:44 PM

Dallas-Fort Worth is among the U.S. metros that prosper by giving citizens the freedom to flourish.

Adam Smith immortalized “The Wealth of Nations,” but prosperity in today’s world increasingly depends on the wealth of cities. In the United States, the 100 largest metropolitan areas churn out 65 percent of all economic output. In Texas, the Dallas-Fort Worth and Houston areas account for 63 percent of the state’s economy. With San Antonio and Austin added in, the big-city share rises to 76 percent.

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Topics: jobs, USA, Taxes, Texas

The World’s Favorite New Tax Haven Is the United States

Posted by David Gunderson on Feb 1, 2016 8:00:00 AM

Moving money out of the usual offshore secrecy havens and into the U.S. is a brisk new business. Last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes.

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Topics: USA, Taxes, FATCA, Privacy

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