On Monday, The Gateway Pundit posted an article about another major corporation leaving California for Texas.
The article reports:
Hil Davis, the CEO of Digital Brands Group based in California, shared his blunt reasoning for moving his company’s headquarters to Round Rock, Texas. Davis told Fox News Digital, “Doing business in the state of California sucks.”
The Round Rock Chamber announced the move in a press release.
“Founded in California and known for its innovative approach to blending apparel brands with e-commerce technology and data-driven consumer solutions, Digital Brands Group’s relocation marks a significant win for economic development in Round Rock.”
“The company’s move reflects the accelerating trend of growth-oriented companies choosing Texas for its business-friendly environment, skilled workforce, and strategic position in Central Texas.”
“We are thankful to move to Texas, a business-friendly state, from California. We believe the operating environment and cost of business is significantly better, while also creating a higher quality of life and lower cost of living for employees. We are excited to build our corporate headquarters in Round Rock, especially as we move into our next phase of growth,” Davis added.
The article quotes Fox News:
Davis pointed to California’s high cost of living, long employee commutes and the rising cost of doing business, including defending against lawsuits.
“You start to add all those things up,” he said. “It doesn’t work. It doesn’t make sense. It’s too hard.”
The relocation comes as California wrestles with a much bigger question about whether the state’s costs, taxes and regulations are driving away the businesses and wealthy residents it relies on.
That debate has intensified around a proposed one-time tax of up to 5% on Californians worth more than $1 billion.
California has brought this on itself. One of the most beautiful states in the union has created an environment where the cost of living and the cost of doing business have skyrocketed. A business needs to go to where the cost of doing business is reasonable and the cost of living for its employees is reasonable. California currently meets neither of those two requirements. It remains to be seen if the state can change enough politically to avoid the economic disaster that is currently in its future.