4 ms·

Lots of pissed of Californians in the thread because it reduces their value... but if you think from outside, it is very reasonable argument... and this article

Lots of pissed of Californians in the thread because it reduces their value... but if you think from outside, it is very reasonable argument... and this article is a service to the people who would otherwise not have thought about this. California wants to maximize benefit to their citizens as it should... and outsiders should take that into consideration when doing business with entities in California. Also this was probably not straightforward to find out... which is why the author thought spreading the word was important. I appreciate it.

collegeburner 4y ago
Yeah for years Calis' massive economy has allowed them to squeeze more from people in taxes and fees and laws. They've managed to basically pass laws for the whole country a bunch of times by moving standards in such a large economy. But now they're going too far, and capital is leaving, and people are leaving, and the state is collapsing slowly and the urban areas are going bad and I will not cry while this happens. Especially not after the years of sanctimonious holier than thou bs out of Calis about how much better they are. I just hope all the refugees don't vote for the same BS when they flee to Texas.
xbar 4y ago
Hiring in California is expensive and burdensome. Further, I think California is pretty sophisticated in its remote-business tax-hunting capability. That does make it a relatively bad target for hiring remote employees in a global-competitive environment. So perhaps you can hire people elsewhere and avoid tax obligations more easily. If so, this is smart business. States and nation-states that let employers get away with such behavior are losing out on reasonable tax opportunities. Disclaimer: I live in California, and I am not pissed off nor do I find my value threatened by this thread.
netsharc 4y ago
Without such rules as the article describes, businesses predominantly active in California would just incorporate in Delaware and say "You can't touch us!"... A bit like how Starbucks, Amazon, Apple in Europe all have the suffix "Luxembourg, sarl" because being incorporated there means they can pay less "local" taxes in other EU countries, thanks to Luxembourg's tax-haven-establishing PM who even got the job of President of the European Commission afterwards. Thanks for funding the penis-rocket, Jean-Claude!
- AdrianB1 4y ago
  The countries you mention pay employee taxes and VAT in the countries where they operate (employ or sell). This is huge in comparison with the profit tax, so operating from Luxemburg is shaving a few percent of the overall total, nothing more. Each other state gets their part in full. What California does is very, very different.

collegeburner 4y ago

Yeah for years Calis' massive economy has allowed them to squeeze more from people in taxes and fees and laws. They've managed to basically pass laws for the whole country a bunch of times by moving standards in such a large economy. But now they're going too far, and capital is leaving, and people are leaving, and the state is collapsing slowly and the urban areas are going bad and I will not cry while this happens. Especially not after the years of sanctimonious holier than thou bs out of Calis about how much better they are. I just hope all the refugees don't vote for the same BS when they flee to Texas.

xbar 4y ago

Hiring in California is expensive and burdensome. Further, I think California is pretty sophisticated in its remote-business tax-hunting capability. That does make it a relatively bad target for hiring remote employees in a global-competitive environment. So perhaps you can hire people elsewhere and avoid tax obligations more easily. If so, this is smart business. States and nation-states that let employers get away with such behavior are losing out on reasonable tax opportunities. Disclaimer: I live in California, and I am not pissed off nor do I find my value threatened by this thread.

netsharc 4y ago

Without such rules as the article describes, businesses predominantly active in California would just incorporate in Delaware and say "You can't touch us!"... A bit like how Starbucks, Amazon, Apple in Europe all have the suffix "Luxembourg, sarl" because being incorporated there means they can pay less "local" taxes in other EU countries, thanks to Luxembourg's tax-haven-establishing PM who even got the job of President of the European Commission afterwards. Thanks for funding the penis-rocket, Jean-Claude!

AdrianB1 4y ago
The countries you mention pay employee taxes and VAT in the countries where they operate (employ or sell). This is huge in comparison with the profit tax, so operating from Luxemburg is shaving a few percent of the overall total, nothing more. Each other state gets their part in full. What California does is very, very different.