Venture capitalist Bryan Goldberg says a recent decision by California to make taxes retroactive is so punitive he may leave the state. He’s not alone feeling this way either. Nevada, Utah, Arizona, and Texas are already welcoming getting California refugees cheerfully. We’re not talking about whiny rich people here but about entrepreneurs tired of starting businesses in a state seemingly determined to undermine and tax them every step of the way.
[Leaving California] would have been unthinkable a year ago, but then you decided to retroactively tax entrepreneurs for achievements that were completed months — or even years — ago.
…aka you have taken a knife and stabbed it in the heart of the golden goose…
But aside from the good weather, the two things that you give me are (a) access to venture capital and (b) engineers.
Unfortunately for you, California, venture investors are leading the charge to explore out-of-state opportunities. Many are furious at you for your reckless taxation, and they are equally excited to see what sort of innovation is happening outside Silicon Valley
I lived in Utah recently. You can start an LLC online in Utah in literally 10 minutes and be registered in 24 hours for $30. California doesn’t have online registration, you have to pay by check, it takes months and costs $800. Why? There is no value-added here for Cali over Utah LLCs.
Utah wants you to start a business. They make it easy. taxes are low and the state is solvent. California is broken. Another thing, two years ago Utah decided their public pensions would be in trouble in a few years if they didn’t do something. The Utah legislature fixed it in one year with no squabbling.
The guy who drove me to SFO on the Super Shuttle recently says his state licenses, permits, mandated instruction, and tests cost him over $1,000 a year and he can’t afford health insurance. That’s right, $1,000 a year in California fees to drive to drive a shuttle bus… He’s a contractor so he pays it.
California arrogantly and cluelessly thinks venture capital won’t leave California whereas, in reality, the process is already well underway.
Micheal Arrington agrees, If America Was A Startup We’d All Quit