4 ms·

Without going into whether this belief is well founded (personally I don't think it is), its a combination of two factors: an assumption that there is a pool of

by Lavery 11y ago

Without going into whether this belief is well founded (personally I don't think it is), its a combination of two factors: an assumption that there is a pool of potential business owners already in the state who are deterred by higher taxes, and a desire to be like Delaware (or internationally, Ireland), where low taxes and favorable regulatory structure are such that many large, inter-state or multinational corporations headquarter themselves there. The first point, as you suggested, is pretty questionable. As you pointed out, it's worth noting that the current wave of entrepreneurship has headquartered itself in California, New York, and Massachusetts, some of the highest tax areas in the country.

WalterBright 11y ago
There's a tech boom going on in the Seattle area (Microsoft, Amazon, Google, Adobe, Boeing, etc.), which has no income tax.
- rrmm 11y ago
  It seems like it's going on there more because it is conducive to talented/idea people being there in a big group rather than about tax structure. Boeing though just built a new facility in another state because of union issues (apparently). Bottom line is that it's a part of the business decision, but not the only part and maybe not even the biggest part.
  - kcmarshall 11y ago
    Boeing has a new assembly site in South Carolina opened in 2011. This is especially ironic (and painful) for Kansas since Boeing had been a major employer in the Wichita area for decades. It sold its Wichita Commercial Airplanes division to Spirit AeroSystems in the mid-2000s.
rrmm 11y ago
If they were in a Delaware situation, wouldn't they not get many of the secondary and tertiary benefits of the business? Ie, there would be a shell company there, but not many jobs, and therefore not many people's commerce adding to the state's prosperity? My understanding was that these benefits were what made this sort of thinking work.

by Lavery 11y ago

WalterBright 11y ago

There's a tech boom going on in the Seattle area (Microsoft, Amazon, Google, Adobe, Boeing, etc.), which has no income tax.

rrmm 11y ago
It seems like it's going on there more because it is conducive to talented/idea people being there in a big group rather than about tax structure. Boeing though just built a new facility in another state because of union issues (apparently). Bottom line is that it's a part of the business decision, but not the only part and maybe not even the biggest part.
- kcmarshall 11y ago
  Boeing has a new assembly site in South Carolina opened in 2011. This is especially ironic (and painful) for Kansas since Boeing had been a major employer in the Wichita area for decades. It sold its Wichita Commercial Airplanes division to Spirit AeroSystems in the mid-2000s.

rrmm 11y ago

If they were in a Delaware situation, wouldn't they not get many of the secondary and tertiary benefits of the business? Ie, there would be a shell company there, but not many jobs, and therefore not many people's commerce adding to the state's prosperity? My understanding was that these benefits were what made this sort of thinking work.