Tesla’s headquarters will move to Austin

Post by kingTug » Fri, Oct 08, 2021, 12:25 AM UTC

guardiangod wrote: post #74

danhak wrote: post #34

California's tax regime is really backward. I suspect Tesla's departure is just the tip of the iceberg and that the repeal of the SALT deduction in 2017 really hastened this trend. High earners pay an effective tax rate of > 50%. They are partially picking up the slack from Prop 13, which artificially distorts the housing market by allowing longtime homeowners to pay property taxes based on decades-old assessed value…

>High earners pay an effective tax rate of > 50%. Musk has not paid any tax because he hasn't cashed out any of his stock options yet. Some of his options will expire next year so he will pay tax then, but I am sure California will get the lion share of the tax revenue (as Musk lived in California up to 2021.)

Post by scoofy » Fri, Oct 08, 2021, 12:26 AM UTC

twalla wrote: post #73

gautamcgoel wrote: post #48

What I'm really curious about is what happens to Austin (and to a lesser extent, Atlanta, Raleigh, Denver, SLC etc). Does Austin become the next Bay Area/next Seattle? Crazy high housing prices, and high homelessness/crime? If so, how long does that take, and what happens to native Austinites? If not, what prevents history from repeating itself?

Austin continues to become less and less affordable for people who aren't bringing in existing home equity from other high cost of living areas. My understanding is the bulk of offers for homes in the Austin area are from Texans and existing Austinites but the bulk of winning offers are from out of state.

Post by outside1234 » Fri, Oct 08, 2021, 12:27 AM UTC

brightball wrote: post #43

danhak wrote: post #34

California's tax regime is really backward. I suspect Tesla's departure is just the tip of the iceberg and that the repeal of the SALT deduction in 2017 really hastened this trend. High earners pay an effective tax rate of > 50%. They are partially picking up the slack from Prop 13, which artificially distorts the housing market by allowing longtime homeowners to pay property taxes based on decades-old assessed value…

I’ve long suspected that the Democratic obsession with federal policy is to try to reduce the appeal of other states where companies may want to move. It’s often seemed like people in California would prefer that a manufacturing operations operate in Asia and come through their ports rather than operate in the middle/south US.

Post by mabbo » Fri, Oct 08, 2021, 12:27 AM UTC

weezin wrote: post #49

NikolaNovak wrote: post #9

I know this is charged but it's genuine question due to my ignorance - why are companies having or moving HQs to Texas? It feels that : 1. It's way out of temperate climate that one would live in when given full choice and all things equal (understanding they never are of course - I live in great white North :) 2. Politics are highly conservative and frequently invasive. now clearly half of Americans like it that way…

Can't launch rockets from California. Splitting time between SpaceX and Tesla is a lot harder when its half way across the country.

Post by pmorici » Fri, Oct 08, 2021, 12:28 AM UTC

cjensen wrote: post #76

When CEOs move, they often move their headquarters closer to where they live. Somehow Tesla managed to survive all the problems of California until shortly after Musk moved to Texas. Folks talking about the advantages and disadvantages of California vs Texas may be overthinking this.