Toyota leaving California for Texas

April 29, 2014

Toyota_Logo_NewesToyota Motor Corporation is moving its North American headquarters from California to Texas. [LA Times]

The Japanese automaker has long located its sales and marketing headquarters in Southern California. It opened its first U.S. office in Hollywood in 1957 and has operated its marketing headquarters in Torrance since 1982.

But, the company now plans to move its U.S. sales offices to Dallas, where the cost of business is lower and Toyota’s American manufacturing plants are closer.

Torrance Mayor Frank Scotto said the move blindsided him.

“When any major corporation is courted by another state, it’s very difficult to combat that,” Scotto said. “We don’t have the tools we need to keep major corporations here.”

About 5,300 employees work at Toyota’s Torrence complex.

Recently, Texas Governor Rick Perry has recruited California companies to relocate to Texas. Approximately 60 California companies have moved to Texas since July 2012.


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achillesheal

Proposition 30 increased the top income tax rate in California to 13.3%, the highest in the nation.


All 5,300 employees relocating to Texas just received an 8%-10% raise without it costing Toyota a penny.


hijinks

Hun? What makes you think 5,300 employees will relocate to that hell-hole? Also, your math stinks. Better go to remedial.


achillesheal

The math is an estimate due to the graduated tax system. Without knowing the income/deductions, and marginal and effective tax rates of each individual, the 8%-10% range is a reasonable estimate.


Certainly not all will relocate, just those who wish to continue to work for Toyota.


Mitch C

I think that you should check the weather conditions (and air condition needs) in Torrance. Texas is a better deal weather-wise, cost of living (housing, taxes, etc) and quality of life. The new Texas transplants will be very happy expecialy not having to pay the userus state income tax that the liberal legisltion is requiring of us. Wake up CA before all you have is takers, because the makers will have been long gone.


Ted Slanders

The down side, not only are you living in the godforsaken state of Texas, but your air conditioning and their very high property taxes will eat up any assumed pay raise.


kayaknut

If indeed CA has the highest top income tax rate it also likely has the most loopholes so the amount of income actually taxed at a high rate is very small, add this the fact that a high percentage pay no tax but take a large amount and it is easy to see why businesses are outta here


Mitch C

As a pensioned-off government employee I paid over $22,000 in State taxes for 2013. Next year as a Nevada resident I will pay zero state income tax. I don’t see how CA can expect those who live here to continue to pay these outrageous taxes. BTW, I don’t know what loopholes you are speaking of, but my CPA didn’t appear to find many that would lower my taxes.


OnTheOtherHand

Big loopholes are generally not available to anyone who doesn’t have enough money to make a living as an investor or to buy them from legislators.


PS If you paid over $22K in state taxes for last year, you have a VERY comfortable pension and owe the millions of taxpayers who earn much less than you get a big THANKYOU. (Some of them try to get by on what you paid in state taxes!)


unlisted

If you paid over $22,000 in state income taxes, Mitch, then you earned between about $260,000 (if single) and $290,000 (if married) in TAXABLE income.


Assuming that you’re not exaggerating and this year wasn’t a fluke, you should fire your CPA for not suggesting ways to lower your tax bite.


Tax-exempt bonds are easy to buy and they’re often insured/guaranteed. At your tax bracket, they should have an effective yield of close to 10% after taxes.


Real estate is another natural. You can hire a property manager and still net 8% to 10% today, with upside potential. And depreciation will shield some of your income from taxes.


unlisted

PS Mitch, your income tax savings alone will service about $350,000 in mortgage debt! I’d definitely be looking at the Nevada side of Tahoe if I had your money! Enjoy!


Mitch C

The taxable income totla is correct. Since income is derived from 5 pensions and deferred comp cashing in deferred comp to purchase another form of investment does not make scence. CA has income taxes that are punishing. No one gave me this money I worked hard for it, and I object to giving it away for programs that I don’t approve of. As an accountant with an MBA I know a little about the tax law, I’ve done everything tht I can do except move.


unlisted

It is highly unlikely that any of Toyota’s California employees pay the 13.3% tax rate. It’s only families that earn over a million in taxable income!


achillesheal

Here are the numbers for a couple:


For earnings between $0.00 and $15,164, you’ll pay 1.00%

For earnings between $15,164.00 and $35,952, you’ll pay 2.00% plus $151.64

For earnings between $35,952.00 and $56,742, you’ll pay 4.00% plus $567.40

For earnings between $56,742.00 and $78,768, you’ll pay 6.00% plus $1,399.00

For earnings between $78,768.00 and $99,548, you’ll pay 8.00% plus $2,720.56

For earnings between $99,548.00 and $508,500, you’ll pay 9.30% plus $4,382.96

For earnings between $508,500.00 and $610,200, you’ll pay 10.30% plus $42,415.50

For earnings between $610,200.00 and $1,017,000, you’ll pay 11.30% plus $52,890.60

For earnings over $1,017,000.00, you’ll pay 12.30% plus $98,859.00


That’s why I said 8-10%. Meant 12.3% not 13.3% (typo).


LameCommenter

Did anyone see Gov. Brown’s news conference comment on the LOSS of nearly five thousand California jobs? As closely as I can repeat him, on network TV April 28 from the BYD Chinese electric transit bus news conference, essentially a quote, flip and bold and arrogant and stupid, “yes we have some burdens, a few regulations, some taxes, but SMART people figure out HOW TO MAKE IT, you know”.


Brown is an over-regulating, over-taxing, whack job Socialist jerk of a leftist governor. The ARROGANCE of his remarks in the face of this impact indicates, I believe, that he’ll never change or get a clue about the problems with his extreme leftist governance.


Good job, Rick Perry. I have property interests in Texas in a busy prosperous county where you can build a rural house or site a mobile home utterly without a permit or inspection. Nobody puts up crazy or dangerous stuff that I’ve seen in extensive travels and living there, just a bunch of Americans going about their housing with minimalist government interference.


hijinks

About the time Toyota headquarters gets shot up by some Texan with their open-carry laws giving him the right to shoot what he wants when he wants, Toyota will pack up for someplace else. International corporations have no loyalty to place — they’re constantly on the move these days. Brown/Perry? Nice fantasy world you live in. Must be comforting to know the plot line before the story appears.


LameCommenter

Well, sorry I touched your liberal buttons, jinks. You had to work in shooting, disloyal corporations, and a fantasy world? But I can’t blame you, you are probably angry that your liberal champion governor proves our conservative points with his every move, and Toyota just voted with it’s pocketbook.


I also can’t blame you as I was once ALSO ignorant of the financial and personal liberty climate of Texas until somebody flew me down first class to consult, and later showed me extensively around. I love it when people open up my stodgy, know-it-all eyes!


They really put my California smugness into it’s proper place! I had it coming, I was a little bit snobbish until then. I now go regularly, a fifth generation Californian falling in love with Texas. It really opened my eyes, getting that grand tour.


Jinks, ole’ pardner, Texas NOW is largely the California that we all loved in the 60’s, bereft of hyper-regulation. It’s quite real, dude; not one bit of “fantasy world” you accuse me of. Check it out. Educate yourself. Start in Austin, hit some small towns.


tojofay

Ride on off into the sunset- any sunset- anytime partner.


Justducky

Wow! You live in a fantasy world, Jinks. It’s apparent that you don’t know the Dallas-Fort Worth area, the VERY respectful people in Texas many of whom legally carry a concealed weapon to keep the peace even into their churches where nut cases may roam. People who move down there LOVE IT and don’t want to come back. I know! My kids have been there for 15 years. I miss them, but understand why. My daughter-in-law can be a stay-at-home Mom and raise her children herself instead of farming them out to let someone else raise them so she can go to work to put food on the table. Their house is almost paid off. They live on two lush acres a quarter of a mile from a lake. The kids are happy and sane and I might add, homeschooled and far ahead of the average public school kids Nationally.


People who think that Texas is “God Forsaken” don’t know Texas.


doggin

Recon they could have moved to Santa Maria. Nice law abiding bunch there. Naturally gun laws are heavily enforced there so no chance of a shooting or stabbing for that matter. .


Ted Slanders

Let Toyota and it’s employees go to the godforsaken state of Texas, where it is known as ground zero for capital punishment. We can thank our godly Christian George W. Bush and current GOP governor Rick Perry for upholding Texas as being number one in the nation for killing our God’s creation, praise!


Texas does have a plus side, in that this godforsaken arid hot state will prepare anyone for what it will be like come Judgment Day when the majority of the Hebrew God’s creation will end up in in the sulfur fires of Hell!


While I was spreading God’s word in Texas one time, I spent a week one night in Kilgore, Texas (a truly anti-Al Gore city). When I was there they actually had signs in town that stated “practice safe sex, place signs upon animals that kick.” When seeing this, I immediately stopped my bus, and had some of my flock traveling with me write up a sign to be placed next to the aforementioned that stated: “Whoever lies with an animal shall be put to death.” (Exodus 22:19) I read in the Kilgore News Herald the next day that all signs relating to safe sex were removed from the city. With a smile upon my face, God’s work was done.


Albeit, if the truth were known, Toyota had to find a less operating environment because of the plethora of recalls of late that is costing this auto manufacturer millions!


Justducky

I lived in Torrance for umpteen years. If I had to choose between Torrance and Dallas, I’d choose Dallas for sure. LA/Torrance has gone to hell:((


achillesheal

If you were able to put a stop to bestiality in Kilgore with your preachiness, maybe you should attend a Board of Supervisors meeting I SLO and talk to Bruce Gibson about a few “shalt nos”.


Matthew Mcconaghy the actor is from Kilgore, Texas, hmmmm.


achillesheal

Sorry, typing on an iPad – shalt nots and a few other typos. I can spell, just can’t type or proofread.


kayaknut

Thanks to Gov. Brown we won’t have any businesses in CA but will have a non-bullet train with no riders.


hijinks

And an empty kayak floating on the mud flats of Nacimiento Lake. Brown’s more powerful than God, right?


kayaknut

He thinks he is.


achillesheal

Blasphemy. Only Obama is more powerful than god. What does that make Putin?


tojofay

Sayōnara. CA moves forward- Tesla. CA always on the wave first. Nostalgia is a cancer.


LameCommenter

Not a good comment, Toj. I drove a buddy’s Model S Tesla 85 and though totally cool replacement for his 550 Mercedes, it was $ 125,000 out the door with all the fancy leather and tech packages, tax and license. Is THAT within most Californians budget? I think pointing to an odd costly boutique manufacturer such as Tesla is not at all a selling point on the Governor Brown/California tax/regulation job destroying mess. Just my opinion, Toj.


Here’s something else on transport regulation. Has anyone seen broadcast of “Driving a Better California”, a 30 minute Calif Air Resources Board propaganda piece paid for by YOU and aimed at truckers victimized by outlawing older diesel trucks? It had everything but sing-song Logan’s Run style computer voices telling you “we know best, cleaner air is best”.


The cost/benefit ratio of destroying a trucker’s financial picture was not considered by the smog Nazi’s.


hijinks

Trucks wear out. What’s the beef? Get the stinkers off the road with a bit of financial help, and we’ll all be better off.


kayaknut

At $125,000 most government employees could afford one plus all politicians, but wait they get a vehicle allowance so don’t have to spend a penny of their own money for transportation.


tojofay

Dude, diesel is deadly. Know anyone with cancer? Out with the old please- quintessentially Californian.


tojofay

“out with the old” that includes Californians who have lost their soul to the nostalgia demon.


LameCommenter

…nostalgia demon….. Well, yes, if fires on the beach without the ARB sampling downwind, and carbureted autos one can fix themselves, and tax rates below 3 % (sales, persnl income tax), and leaded plumbing solder that is quickly limed-over/encapsulated and no factor, are nostalgia, well you nailed me. Real fish at Brebe’s ocean house. half dollar gas.


Wrong though on the lost soul. I lost it long ago toj, the part I didn’t give off to a Savior, the rest was lost to a leggy Morro Bay princess. Bliss. Sah-weet.


Thank goodness she has vision issues, or I’d be toast.


achillesheal

“Torrance Mayor Frank Scotto said the move blindsided him”? Huh? You can’t turn the TV on for 10 minutes without seeing the Rick Perry commercial courting CA businesses to move to Texas.


Justducky

Yeah, that was a real “Duh!” moment.


Pelican1

There was a time in our Golden history when we encouraged and recruited businesses to come to California. Now however, the current political leadership does little or nothing but propose and pass legislation that continues to degrade our culture.

California Dream’n has become nightmare.


hijinks

I guess the California nightmare is why so many people keep moving here?


doggin

Hardly, Look at the real numbers cause more are leaving Ca then coming in. Even with your Illegal migrant influx although many of them are leaving as well once they see what your kind has done to our once Golden state.


Zuma7

Yes, even Jerry Brown said, California is a magnet for the uneducated and unskilled workers. I wonder who he meant?


BeenThereDoneThat

Ah yes CA. looses another business. Anyone wanna bet over regulation played into it?


Slowerfaster

“Anyone wanna bet over regulation played into it?”


Naw …this is just ‘Free Market Economics’ at work, unless you count a higher standard of living as over regulation.


isoslo

This is what happens when the state over regulates!


Pelican1

You are so right! In addition, it’s no secret that California has become a one trick pony, putting all their eggs in one basket known a the Silicon Valley.


Justducky

Two tricks, Pelican…some of us stay because of the good weather on the coast and just hope that the beautiful Central Coast won’t turn into LA.


Pelican1

Keep hoping!