July 24, 2008

AAA Drives Away

Another business leaves California.

A symbol of California's car culture is now picking up and moving a big chunk of its operations out of state. Earlier this week, the California State Automobile Association, an affiliate of the national AAA, announced it is closing all three of its call centers in the state at a loss of 900 jobs. Spokeswoman Cynthia Harris was quite blunt about the reason: "It costs more to do business in California than other states." Her group will now will be answering calls from California motorists from new centers in lower-cost Arizona and Oklahoma.

This is sumpin' that liberals cannot get through their thick heads. When you make the cost of doing business prohibitive, businesses will move to where the costs are less. That is one of the reasons we have businesses leaving this country. If it is cheaper to do business elsewhere, that's where the business will go. Hence, you have to deal with Tarun when you call tech support.

Few entities in California are better known than the California State Automobile Association, which for decades has provided the car-happy state with auto insurance, towing services and travel planning. Its departure is one more sign that California's current tax and regulatory climate is driving jobs away. California's liberals seem oblivious to such developments. One-seventh of California's pending $101 billion state budget is red ink, the result of the state's leadership once again failing to rein in spending and develop a less volatile tax base. The Democratic legislature has proposed over $8 billion in higher taxes to plug part of the gap, but for the last month there has been a budget stalemate as the GOP minority refuses to consider higher taxes and Governor Arnold Schwarzenegger dances between the two sides.

They have a similar problem with business in Michigan and they think they can solve it by raising taxes on business. Why do you think foreign car companies build plants in the South rather than states like Michigan? Let me count the ways: Lower taxes, less regulation, and cheaper workers.

This works on the national stage as is shown by talking to Tarun in tech support. The "Irish miracle", the increase in companies moving to Ireland, was caused by Ireland creating a pro-business environment. If you make it easier for companies to do business, that's where they will move. This is a basic truism that liberals fail to comprehend, prolly because they hate business. Business is eeeeevil. Gummint is good. So is socialism.

Posted by denny at July 24, 2008 03:50 PM  
Comments

I found out as a small business owner how prohibitive it is to hire employees and provide workmens comp, pay SSI, buy business insurance fill out quarterly taxes, permits..etc...

It's to the point where it's cheaper to work under the radar and pay the fines if you get caught

And I live in a business friendly state.

Posted by: hammer on July 24, 2008 04:27 PM

This is the very complaint that I have had about Illinois for years. Every ten years after the census we can count on losing another seat in the house of Representatives. My state is totally under the control of the democrats....lock, stock and barrel. They still don't get it...and they never will.

Our beloved Gov. (Blowjobavich) tried to increase taxes on evil corporations this year. Such a dumb idea that even his fellow dems voted against him. We're stuck with two idiots for senators as well. Fortunately, one of them may be getting a promotion in the near future. Unfortunately, we still won't be rid of him!

Posted by: Steve S. on July 24, 2008 04:51 PM

WooHoo more jobs in Arizona. Lets see in the last couple of years Google, Ebay USAA have all moved to Arizona I see a trend here.

Posted by: Greg1 on July 24, 2008 04:56 PM

Aren't most Democrats lawyers? It is my theory that they can't tolerate others profits unless they can find a way to tax, fine or sue that money into their own pockets.
Lawyers- like Obama- are so brillant, that -amazingly enough, they know how to run your life better than you do! They make great nannies. Nannies with sticky fingers.
California just lost a possible toyota plant too.
But the Boxers and the Pelosies never get lost.

Posted by: Teri on July 24, 2008 06:31 PM

Socialist Liberal Democrats & Business.....

I have a small Business & deliberately maintain a low profile to eliminate the need for as much of the overhead as possible & governmental interferance

My son ,heir & co-owner sometimes talks about expanding, buying more equipment,larger customer base.......not in my life time as Goverment as defined by the Socialist Liberal Democrats is opposed to a successful small business free of Goverment inspection & regulation as well as being in favor of a confiscatory taxation program.

I purchase Business Liability,Fire & Equipment Replacement insurance. I do not need any medical insurance as the company I formerly worked for provides my Medicare supplement for my wife & I....my son has medical insurance at his day job.

As the business expands ,any work in excess of what we can handle is farmed out & we make a comfortable profit margin on that portion of the business.We may upgrade some of the equipment for productivity, competitiveness & business writeoffs, but have no plans for hiring of personel or dealing with the cost of providing benefits & governmental oversight of our business operations.

Someday when I do finally retire & my son takes over ......he might venture into an expansion program, that will be his choice but I want no part of dealing with the issues.

Some people have taken me to task for how I run this business ....many of these people are no longer in business.I have been successful for 30 years both part-time & for the last 15 years full time. Maybe I have just been lucky .....but I doubt that to be the case. You people who think the government meddles excessively in your daily lives .....count your blessings you do not own a business.

Posted by: dudley1 on July 24, 2008 07:06 PM

Steve S. I too live in Illinois. I can proudly say I did not vote for our current governor, nor the two senators. I truly wish they would impeach him!

Posted by: Helen on July 24, 2008 07:09 PM

Unfortunately, Helen, I moved from Illinois twenty years ago, and I probably did.....

Posted by: John in May-retta on July 24, 2008 08:55 PM

Governor Arnold Schwarzenegger dances between the two sides.

No shit! He's been dancin' like a girly man ever since the dumbasses elected the RINO!

"I think that we have to be very, very careful about tying the hands of future governors and future legislatures," says Democratic Assemblyman Dave Jones.

No, asshole! It's your hands that need to be tied, Dooshebag Dave Jones! You dumbass motherfuckers work for us! You are shitting on this once beautiful state, and I can't believe that someone hasn't knocked your dick in the dirt yet!

I need to shut down right now before I write something that's gonna get me in trouble or arrested. I'll tell you one thing though, "the people" are tired of your shit and aren't gonna put up with it much longer....

FUCK YOU!

Posted by: CharlieDelta on July 25, 2008 01:07 AM

CharlieDelta,

Calm down. All we here in KA need is an
increase in our meager 8 1/2% sales tax to balance the budget. An increase in the garbage collection fee to hire more cops. Divert the gas
tax from road repair to welfare. A new bond issue to create smaller classe rooms to accomidate the illeagle alien kids in our schools.
And an 18 cent excise tax on plastic grocery bags.

Then everything will be hunky dory in Kalifornia.

Just relax and vote "yes" on everything.
It's the Kalifornia way.

Pete

Posted by: Pete on July 25, 2008 02:17 AM

Excessive taxation and regulation driving businesses out of the state. We know all about that in New Jersey.

Posted by: Jim - PRS on July 25, 2008 03:22 AM

Pete-
Kalifornia is a fuckin' joke! It's just a matter of time before the beaners turn this place into another TJ. Another shithole. Another third world gutter...

It's just a matter of time before the moronic liberals give it to 'em on a silver platter with a blow job on the house!

Man, I find myself at the crossroads here. I don't like to run from a fight. I don't like to run from anything. Lemme throw a quarter in the Juke Box and ponder for a while...


Posted by: CharlieDelta on July 25, 2008 03:32 AM

Sir Dudley, what state do you live in? We live in MN and our small biz is being taxed to death. Help!?

Posted by: LisaKay on July 25, 2008 06:39 AM

Dudley, last year I busted my ass at my clinic to exceed a gross figure I had in my mind from several years ago that to me would mean I've really succeeded. In order to do that, I had to hire more people (cost me more), buy more equipment (cost me more) and make some changes (all cost me more). It paid off, my gross exceeded the number I wanted to hit so in "my mind" I was successful. Then tax day came. My accountant (friend, client, adivsor) came to my house to go over things with me (he's never done that before, something was up). He started going over all the numbers on my return, most not meaning a lot to me as I don't nor do I want to, understand what they all mean. When we were done, he said he wanted to be with me to be sure I was sitting down. Had to write Uncle Sam a check for 70K plus some. Never had to do that before. Seems I hit a certain number and voila, jumped into a whole new tax bracket. Oh yeah, Uncle Sam, thanks for the fucking alternative minimum tax you douchebags. Anyway, what did I learn. I worked hard and more hours, I didn't change my salary, I did hire more staff (economy you are welcome, I did give them all raises, again, your welcome economy) and on paper, my business looks more valueable. But I have absolutely no more money now than I did at the end of the 06 tax year. My friends always complement me and seem envious that I'm my own business owner that is doing quite well. If they knew all the intricacies, they'd probably be thankful they work for corporate America.

Posted by: Ray on July 25, 2008 07:10 AM

Dudleys Business....Ager Machine & Tool

LisaKay, I live in Erie Pennsylvania, my business is located 7 miles south of the City Tax limits in a rural setting. Out here in the country we have an occupational privilege tax.....$10.00 per year per person, if my business were in town that would be $54.00 per year per person. I won`t go into the other BS taxes which are levied in town , it suffices to say that Minnesota`s tax structure is far worse then Pennsylvania.

Ray.....you illustrate quite well why I maintain a low profile in my Business.

Posted by: dudley1 on July 25, 2008 08:11 AM

Ray - Just remember that Jug Hussein Ears is gonna raise taxes on small business owners. If you make over $250K, which many small business owners do, you're not paying your fair share. I wonder how many people are gonna get laid off because of this? Add in the hike in the minimum wage and I see unemployment, especially for low skilled workers, ratcheting up.

Posted by: Denny on July 25, 2008 12:41 PM

Oh Denny, be sure, I've already been warned by both my accountant AND my financial advisor that should that moron become the next President, I better plan on working harder, longer and making less. Because business has been so good, I have built up the business bank account to have a good months worth of money should I need it and then some. I was planning on getting two new and very expensive pieces of equipment for the office, but that would eat into that cushion I have so it's not going to happen. And that is what the economy has to look forward to should the libs commandeer the WH, people like me who won't be contributing to the welfare of slackers. Won't happen.

Posted by: Ray on July 25, 2008 01:57 PM

The solution for California is pretty simple really. In fact so simple that I'm surprised its simpleminded liberals haven't already thought of it. Pass a law requiring any business that does business in California must locate its headquarters in California and have the snot taxed out of it or not do business there. That'll teach those evil businesses!

Posted by: Boss429 on July 25, 2008 06:23 PM

Don't blame me: I voted for McClintock! I still lived in California during the recall. I voted for Aaahhnuld during the runoff because I just didn't want to see Cruz Bustamecha maintain a stepping stone to governor.

Then, I was sitting at 405 and 101 wondering what in the world I was still doing in the PRC. I contacted a headhunter that specializes in my field, and in 4 weeks I had accepted an offer with a firm here in Tennessee. 4 weeks after that, I GTFOOC and never looked back.

For those of you in Arizona who are smugly welcoming AAA, Google and all the others, bear this in mind. They are coming there from California, and are bringing Californians with them. Many of them will do as I did: they will leave California in their rear-view mirrors. Most will not. Just like what the Noo Yawkers, the Massholes, and the people from socialist enclaves like Wisconsin and Minnesota did to California in the 1950s the Californians will do to you.

I for one will be profoundly sorry to see it happen, but there is virtually nothing you can do about it.

Posted by: the friendly grizzly on July 27, 2008 08:24 PM

I'm an exile from Michigan, so I can understand how all the Cali. exiles feel. Now in NM, which is kind of a dump. But what are my options?

Years ago, I was stationed at Ft. Ord, near Monterey. Occasionally, I think about what a beautiful place it is, and how much I'd love to live there.

And then I remember it's in California. And that I'd need to leave all my "assault rifles", pistols, etc. And pay taxes for nothing.

Then I realize Monterey ain't so beautiful anymore.

Posted by: Gun-totin-wacko on July 27, 2008 11:17 PM

Oh, and isn't it ironic that both Ahnuld and Jenny-Poo are immigrants that have been touted as being worthy of an amendment to the Constitution? And they run the two most F'ed up states?

Posted by: Gun-totin-wacko on July 27, 2008 11:19 PM
Post a comment