Bye Bye and so long Golden State

[Artful]

http://www.investors.com/politics/editorials/californias-carls-jr-says-so-long-golden-state/


California’s Carl’s Jr. Says So Long, Golden Statehttp://www.investors.com/wp-content/uploads/2016/03/EDIT5-carls-031416-newscom.jpgOnce a corporate fixture in California, where the company began, Carl's Jr. moved its headquarters to Nashville, Tenn. some say to avoid California's onerous taxes and regulations.


States: To hear Hillary Clinton and Bernie Sanders, you’d think that taxes can go up to 60% or even 80%, and businesses and investors will just … pay up. But the growing number of businesses stampeding out of high tax areas suggest that they’re very wrong.

We got more evidence of that this week when CKE Restaurants, the corporate parent of Hardee’s and Carl’s Jr. restaurants, announced that they are relocating to Nashville, Tennessee.

Hardee’s will move its headquarters from St. Louis, Missouri, to Nashville, Tennessee, one of America’s fastest growing states.
Oh, and did we mention that the state has no personal income tax?

Meanwhile, the Carl’s Jr. move puts more egg on the face of California and the political class in Sacramento. Hamburger fast food chain Carl’s Jr. was founded in California and for years has been headquartered in Carpinteria, California. The highest income tax rate in California is 13%, so moving to Tennessee, where the tax rate is zero, will save the company millions of dollars on taxes a year.

Yes, we know that CKE’s official line is that the firm is relocating because it has less need for office space as it consolidates operations. But the company executives say this with a wink. Tax savings are a big factor, as is the stifling regulatory environment on the left coast, where businesses are treated like villains and rich people as cash dispensers for big government programs. It’s not a coincidence that CKE’s CEO Andy Puzder has been one of the leading critics of high taxes and onerous rules in Washington D.C. and Sacramento.

The state legislative group ALEC finds in its latest “Rich States, Poor States” rating of the states on business climate that California ranks 44th of all the states in business competitiveness. California has lost roughly 9,000 companies over the last decade, with most of them moving to Texas, Florida, and Tennessee. Last year, in a major loss, Toyota moved its North American headquarters from the Golden State to North Texas.

Thanks to its high taxes and burdensome regulations, California’s hemorrhage of jobs and businesses won’t end soon.

Burger King recently relocated its headquarters out of the U.S. completely in favor of Canada, where the business tax rate is only about half what it is in America. Dozens of others have left through “inversions” to cut their tax burden.

So, thanks to the federal and state tax codes, American businesses are departing for friendlier shores — taking thousands of high-paying jobs with them.

Given all this, why do Clinton and Sanders keep saying that they are going to get more taxes out of the rich with higher tax rates?

California is now going to get 13% of zero from Carl’s Jr., just as the state gets 13% of zero from Toyota. And Washington, D.C., will now get 35% of zero income from Burger King.

Hillary and Bernie say that they stand for the “working folks,” but the victims of their plundering the rich with high tax policies are middle-class families who are losing their jobs in California. To make America great again, one goal should be to make our national policies look more like those of Tennessee and less like those of California.

[jonp]

There is a lesson in that story somewhere if government would listen. They won't.

[Handloader109]

It has been proven numerous times that lowering the tax rates gains you tax revenues. But liberals can't seen to understand this. Must be all that new math.

[runfiverun]

yeah someone thinks carl's junior is a high paying job.
there is a lesson in there somewhere.

[jmort]

Thank God I was able to leave. It is a nice place to visit, sort of, if you don't mind giving up your right to carry.

[Wis. Tom]

51% of working Americans now make under $30,000. The tipping point has been reached and its' downhill from here. High paying jobs are in the past and disappearing daily. Lesson over.

[gpidaho]

Seems to me that those with the sense enough to leave California would, and just give it back to Mexico. Gp

[Stewbaby]

They'll just turn Nashville and TN more purple

[ncbearman]

That's a Hardees logo here in NC. WTH?

[imashooter2]

yeah someone thinks carl's junior is a high paying job.
there is a lesson in there somewhere.

They aren't closing the minimum wage restaurants, they are moving the corporate headquarters. There are PLENTY of high paying jobs at the corporate headquarters.

[runfiverun]

possibly.
but I'm sure they will adjust those wages to be on par regionally, like most other big company's do.

[imashooter2]

Executives don't live by the same rules as their subordinates.

[smokeywolf]

Corporate executives are pretty much like legislators. The rules only apply to the peons, never to them.

[Smoke4320]

That's a Hardees logo here in NC. WTH?

Carl's Jr IS Hardee's in western states

[runfiverun]

Hardee's was it's own thingy for a while [then Carl's junior bought them out]
we still see an occasional Hardee's here and there.
Hardee's used to be just Dee's, I still remember them having 2 cheese burgers for 19 cents.
they opened up some sit down family type restaurants right before Carl's bought them.

[BrassMagnet]

It has been proven numerous times that lowering the tax rates gains you tax revenues. But liberals can't seen to understand this. Must be all that new math.

I disagree. Lowering taxes does not always raise revenue.
The taxes must be considered high enough that people want to avoid paying them before a tax rate decrease will result in a revenue increase. This relationship was described as the "Laffer curve" and you can read the Wiki entry here:

https://en.wikipedia.org/wiki/Laffer_curve

Liberals do understand this. They don't care! They want to punish those who are doing well and they don't care if the punishment causes less revenue to support their favorite programs.
I view liberals as those barbarians who would rather destroy property than see someone else possess it.

[BrassMagnet]

Back when Ronald Reagan was an actor and the tax rate was punitive enough to motivate actors in Hollywood to avoid it, they would quit working after they reached the income level where they considered it punitive.

Result: Fewer good movies made.

[ncbearman]

Carl's Jr IS Hardee's in western states


Hardee's was it's own thingy for a while [then Carl's junior bought them out]
we still see an occasional Hardee's here and there.
Hardee's used to be just Dee's, I still remember them having 2 cheese burgers for 19 cents.
they opened up some sit down family type restaurants right before Carl's bought them.

Oh this explains a lot. There's a bunch of em around here.

[smokeywolf]

Had a friend who was a general contractor. He used to take 3 months off every year so that he wouldn't exceed $150,000 gross in a year. Said if he worked the other three months, nearly 100% of the income from two of those months were taken in taxes.

[NoAngel]

Well Andy Puzder was just nominated as Secretary of Labor!!!!!
The whiners can kiss their minimum wage hike goodbye!!


Go get 'em Trump!

[dtknowles]

Had a friend who was a general contractor. He used to take 3 months off every year so that he wouldn't exceed $150,000 gross in a year. Said if he worked the other three months, nearly 100% of the income from two of those months were taken in taxes.

Either your friend did not know what he was talking about or he was just telling you a tall story. The top tax rate has been less than 50% for decades and there is no SS tax on income over $150,000 either. I have been making more than $150,000 a year for quite a while and I take home more than half the money I make over $150,000.

Tim

[starmac]

Doesn't that depend on the state you live in?

[runfiverun]

oooh you get to keep 55%.
it sucks.
I was taking home about 55% of my pay check at one time too.
now I take home 100%...... of nothing.

[Reg]

Artful
Miss your comments on "the other side"
Good to keep the pot stirred from time to time.

[frankenfab]

In regards to their burgers, I find them quite tasty, except for their PC "all natural" burger. The six dollar (really only $4.50) burger was awesome. You can still get it if you ask at some locations.

They have awesome breakfast biscuits, also. I recommend the loaded omelet biscuit.

[dtknowles]

Doesn't that depend on the state you live in?

I don't think any state takes more than Calif which max's out under 14%. So, yeah, 40 to the Feds, 14 to the State and 2 for Medicare. You could be taking home less than 45% of your gross above $150,000. My state only takes like 6% so I take home more than half.

Tim

[dtknowles]

oooh you get to keep 55%.
it sucks.
I was taking home about 55% of my pay check at one time too.
now I take home 100%...... of nothing.

I prefer not to complain about how much of the money the government takes, I complain about what they do or don't do with it. I wish they would use it to pay down the debt.

Tim

[snowwolfe]

No wonder people are moving to Tennessee in droves! Goes to show how a government can function without the aid of high real estate taxes and state income tax, not to mention ridiculously low vehicles registration costs ($24.50) and no toll roads.

[NoAngel]

We just keep getting business left and right. Hardee's and Beretta not to mention Nissan and VW. The only thing I hate about it??? With prosperity comes the hippy scum. Any time a place flourishes, here come the lazy, inept left .......dang I'd really like to use another word or two here............ with their I want some, gimme gimme hand out.

[starmac]

How many times does it say that this item is known to cause cancer in California?
That has to be the most used warning in the country, and if true Cali would be uninhabited.

[dragon813gt]

We just keep getting business left and right. Hardee's and Beretta not to mention Nissan and VW. The only thing I hate about it??? With prosperity comes the hippy scum. Any time a place flourishes, here come the lazy, inept left .......dang I'd really like to use another word or two here............ with their I want some, gimme gimme hand out.

Give it two decades and you will be facing the same problems the North East and West Coast have been dealing w/. The bad always follows the good. If you think they're going to change when they more there you are mistaken. I wish you luck because you will need it.

[smokeywolf]

Either your friend did not know what he was talking about or he was just telling you a tall story. The top tax rate has been less than 50% for decades and there is no SS tax on income over $150,000 either. I have been making more than $150,000 a year for quite a while and I take home more than half the money I make over $150,000.

Tim

Actually Tim, this was decades ago. My friend has been retired for nearly 20 years.

[dtknowles]

Actually Tim, this was decades ago. My friend has been retired for nearly 20 years.

The old advice is not longer appropriate. They dropped to top tax rate for just that reason. Unless you think we should be encouraging people to not work too much, that really high top tax rate was stupid.

Yes back in the 50's 60's and early 70's if you made that kind of money in California you could be paying over 80% in Income taxes. Back then making that kind of money would be like making $500,000 today.

Tim

[NoAngel]

Give it two decades and you will be facing the same problems the North East and West Coast have been dealing w/. The bad always follows the good. If you think they're going to change when they more there you are mistaken. I wish you luck because you will need it.


Don't I know it. I can already see the left wing hippy trash pioneers beating paths and making settlements.

These people are like fishing with a bunch stupid kids. Catch one fish and everyone casts their line in the same spot.

[GL49]

I prefer not to complain about how much of the money the government takes, I complain about what they do or don't do with it. I wish they would use it to pay down the debt.

Tim
Agreed. Sooner or later, we'll have to pay our bills.

[dtknowles]

Agreed. Sooner or later, we'll have to pay our bills.

Yeah but will we pay in Blood or Treasure?

Tim

[Riverpigusmc]

My state has no income tax.

[Hardcast416taylor]

Minimum pay raise to $15.00 per hr. for a `burger flipper`? Guess what your $4 or $5 burger is going to cost then!Robert

[jonp]

I couldn't find the date on this article but it seems that I read about the move last year. Big surprise that companies are following tax refugees out of California. I hope they are going to be happy with all of the illegals they seem to love as a sanctuary. Millions of illegals using government benefits that keep the Dems in power but no one left to pay for them. Doesn't seem like a good idea to me.

[jonp]

Minimum pay raise to $15.00 per hr. for a `burger flipper`? Guess what your $4 or $5 burger is going to cost then!Robert

Who ever saw this happening??

McDonald’s Response to $15 Minimum Wage: Automation in Every Store Written by Bob Adelmann (http://www.thenewamerican.com/economy/economics/itemlist/user/51-bobadelmann)

(http://www.thenewamerican.com/economy/economics/item/24699-mcdonald-s-response-to-15-minimum-wage-automation-in-every-store#)


It’s official: McDonald’s says (http://lidblog.com/mcdonalds-reacts-to-15-minimum-wage/) that every one of its 14,000 stores nationwide will be replacing cashiers with automated touch-screen kiosks. They’re starting with stores where minimum-wage laws mandate the highest rates, such as Florida, New York, San Francisco, Boston, Chicago, Washington, D.C., and Seattle.

According to CNNMoney (http://money.cnn.com/2016/11/17/news/mcdonalds-steve-easterbrook/)

So the fast food giant is rolling out self-order kiosks, mobile pay options, an updated interior design, even table service. The changes are already starting to show up at locations in Florida, New York and Southern California, where 500 restaurants have been updated. Restaurants in San Francisco, Boston, Chicago, D.C. and Seattle will get upgrades in early 2017. Now, McDonald's loyalists will be able to place their customized order on a touch screen, take a seat and have their meal brought right over. Next year, they'll even have the option of mobile ordering.

That means that, eventually, more than 20 million customers every day will place their own orders at a kiosk or on a mobile device and then have them delivered by a human to their table. And it’s just a matter of time before those humans will be replaced by machines as well.

Ed Rensi started as a grill man for McDonald’s in Columbus, Ohio, in 1966. He was promoted to manager within a year and continued to be promoted, all the way up to president and chief operating officer in 1984. In 1991, he was named chief executive officer and retired to a life of speaking professionally about his experiences in 2007.

In May, Rensi was asked about the discussion over raising the minimum wage. He responded: “I guarantee you if a $15 minimum wage goes across the country you’re going to see a job loss like you can’t believe. It’s cheaper to buy a $35,000 robot than it is to hire an employee who’s inefficient making $15 an hour bagging French fries.”

It’s all about the math. Rensi oversaw every aspect of McDonald’s: sales, profits, operations, customer satisfaction, product development, personnel, and training. If a store can replace a $15 an hour employee with a robot that costs $35,000, it will not only improve that store’s operating margins but will actually enhance customer experience: robots don’t get sick, they don’t have attitudes or get pregnant, they don’t go on strike, they always show up for work on time, and, as software improves, will provide a friendly, interactive interface with the store.
McDonald’s decision will also answer, finally and forever, the question that economics textbooks and economics professors have been raising and then trying to answer for decades: What impact will raising the minimum wage have? Supporters of minimum-wage laws say that they increase the standard of living of workers, reduce poverty, reduce inequality, and boost the economy as well as the morale of workers.

Opponents say minimum-wage laws increase unemployment and poverty and are especially damaging to small businesses that are forced to raise their prices to cover the increased labor costs.

Here’s the math: a worker being paid $15 an hour costs his employer $38,500 a year, including unemployment insurance and the employer’s part of Social Security. If Rensi is right, and the average robot in a McDonald’s costs $35,000, in less than a year that store has paid for it in reduced wages, and eliminates that $15 an hour cost forever after. If there are 30 employees in a McDonald’s, and if just 10 of them are replaced by a robot, customers will enjoy another benefit: lower prices on their Happy Meals.

[dtknowles]

My state has no income tax.

Yeah, I used to live in Florida. Not every state can live off the tourists :-)

[Hickory]

Governments at all levels, Federal, state, and local, are glutinous monsters.
The more money you allow them to consume, the more money they want.

[starmac]

Yeah, I used to live in Florida. Not every state can live off the tourists :-)

My state has no state income tax, no state sales tax, and even no state property tax. We do have a pretty big tourist industry, but it never supported the state and brings in pennies compared to what the state makes off of the evil oil companies.

[dragon813gt]

Those oil companies are the reason you don't have those taxes. Take the oil money away and you would need those taxes. But I'm sure you realize this.

[Walkingwolf]

If it does not fit their plan they now call it fake news. I am sure they will make the same claims of this story based on facts.

[starmac]

Those oil companies are the reason you don't have those taxes. Take the oil money away and you would need those taxes. But I'm sure you realize this.

Oh we will have taxes before long. Our politicians have grown government to an unsustainable level just like most places. They started yelling we may need to tax within days of the price of oil falling off of it's high point, never mind that it prospered on 20 dollar oil not that long ago.

[woodbutcher]

:-D Yep,Florida has a good tourist trade.They also have some pretty prosperous business entities going too.One of them is Knights Armaments in the Cocoa area.Its owned and operated by a friend of mine.C.Reed Knight Jr.
Good luck.Have fun.Be safe.
Leo

[Duckiller]

Don't feel real bad for California. The good citizens voted for what they wanted. Prop 63 limits how much ammo I can buy and requires a background check. A good citizen wrote to Western Outdoors News (local hunt and fish mag) to say that this will stop bad guys from buying ammo and in 2018 he will vote for Gavin Newsome for Governor. A large percentage of our citizens feel this way. These people have no feel for guns,don't like them and do not see them as defensive or recreational tools. They overwhelmingly voted for and believe in Hillary. Even in the primary Hillary beat Bernie. Hopefully the Federal judiciary will enforce the Constitution and help the citizens of California and Hawaii keep their guns. I am looking to move. Age and concerns about where to go have kept me here for 50 years. No.1 son is moving to the Portland area and SWMBO and I are looking to move to a small town south of there. I feel sorry for those that must stay .

[dragon813gt]

Oregon isn't far behind California.

[daniel lawecki]

Robots increase profits for companies and CEO wages and benefits go up. The price of goods doesn't go done they may not go up as fast but never down. Mc Donald's will just keep charging the same old prices.

[kiwi]

Even if a big Mac cost $20 people would still buy the rubbish I stopped eating Takeout years ago I can make better food at home for a lot less than fast food outlets charge,

[smokeywolf]

Robots increase profits for companies and CEO wages and benefits go up. The price of goods doesn't go done they may not go up as fast but never down. Mc Donald's will just keep charging the same old prices.

Actually, when a company buys new machinery or technology that replaces a large percentage of its employees, they usually raise prices to pay for the new tech equipment, as they have no intention of taking any hit to existing profit margins to pay for the change-over. You make the customer pay for your new equipment.