You make some good points. But I would argue that silicon valley is successful because of the reasons you named (location, people, weather, water, etc) in spite of high taxes. I believe it could or would be even MORE successful with lower taxes. Even the companies you mentioned have many workers working overseas in manufacturing and in their giant datacenters (ie Google, Apple). More of those jobs could be here too, but they're not.
I also think it's strange that you're arguing for higher taxes, while pointing out smaller companies 'don't matter'. You're arguing for higher taxes which in theory is supposed to help the little guy, while in the next breath talking about how you don't care if it hurts the little guy's company. I think lower taxes would help all companies.
You can have taxes at zero, and manufacturing like that is never coming back. Ever.
$1 an hour can't ever compete with $10 an hour, doesn't matter how low taxes are. Throw in silly little things like workplace safety regulation and environmental protection and its simply not an equation.
And it doesnt have to. Do you want to take a job twisting a widget for 12 hours a day? No one does.
Or would you prefer the state have a school system that supports people creating new products that can be manufactured elsewhere?
I mean, for all people talk about China....how many products do you use that were INVENTED there? When Apple sells a billion iphones, yes 200,000 chinese get paid, but where does the big money end up? Not in Shanghai, but in San Francisco.
The engineers getting paid $150,000 a year are supporting a lot more jobs than someone making $10 an hour in a widget factory.
Companies are based where they are for one reason: people. So weather plays a part in that the people these companies want to hire want to live in desirable weather places.
So why worry about raising taxes? Theres no where else on earth that has the mix california has in terms of desirability.
Companies locate where the people are. The people locate where the companies are.
Raising corporate or income tax wont change it.
You know what will? Erasing the things that make the state desirable. Kill education in San Jose, and suddenly the school district in Boise is a little more enticing for that engineer. Decimate Berkeley, and suddenly the pool of innovation and R&D that tech companies lounge in dries up.
Theres a reason the low tax states like Alabama, Arkansas and South Dakota are in the shitter. Theres a reason the most desirable cities in the world are high tax.
People hate paying for it....but they hate losing those amenities even more.
I didnt say I dont care about the little guy, I do, I said the article and stats dont differentiate. Theres a big difference between a 3 man company leaving the state and a 30,000 man company.
And you know why these scare articles that quote anti-tax organizations never name any names? Thats because there arent any. I dont want to see Mollys Beads move to Texas, but in the end of the day, her $5,000 a year business doesnt mean much in the big picture.
And honestly, Molly doesnt move because taxes go up .25%. She moves because of friends, family, weather etc. Do you really think the average small business sits down and tallies up costs for 50 potential locations? No, they open near people they know, in places they like.