Tesla, Panasonic to build battery plant in Nevada

Another blow to the CA economy. These are good paying jobs that don't require college degrees. Part of the problem of why they are leaving CA is that the CA state has made such environmental regulations that go above the Fedearl standards that end up raising the price of manufacturing. To be fair to the CA government, Gov. Brown did try to come up with a $500 million incentive package (that would equate to 10% saving of the cost of opening the plant) and that would have eased some of the environmental restrictions to that of the Federal level and offered some tax breaks to the company, but the majority Dem CA state Assembly didn't vote on it, they let the August deadline pass, and made it a point to be proud of on getting out in time without having to stay for an extra session to pass this bill. Yet, this same band of legislators will push for a bill banning the use of plastic bags in grocery stores and forcing consumers to pay an extra .10 cents "bag tax" that goes to the stores and unions with ease.

So much tech talent and good jobs that are going to be leaving CA to head for NV, a state that doesn't have a state income tax either. CA only has themselves to blame, they keep electing the same people to run the state and they keep screwing it up.

Nevada, no state income tax, Texas, also no state income tax and bagged the Toyota headquarters being moved out of California. North Carolina offered twice as much in incentives for the Toyota HQ as Texas ($100M vs $50M), but couldn't match that feature.

North Carolina offered twice as much in incentives for the Toyota HQ as Texas ($100M vs $50M), but couldn't match that feature.

It not only applies to businesses. When a pro athlete has an offer on the table from a team in FL or a team in CA, the teams in FL can offer a lower bid. Because FL has no state income tax as compared to CA. Consider this, in addition to the Federal taxes if you made $1 million, (about 34% or $340,000) in CA you have to pay an additional 13% ($130,000) compared to NV ($0).

I get it that they will have tax loopholes, etc, but the bottom line is, even with all of the loopholes, you still are going to wind up paying a lot more in taxes in a place like CA as compared to NV. So businesses and people move away, and the state gets no tax (from sales taxes being spent in CA). Just make the tax rate lower, people will tend to spend more and you get more income from sales taxes and others vice trying to make a large grab before one gets to spend.

Japanese will learn quickly that Texas is not California.

Tesla and Panasonic will create many California jobs while building their factory.

It's a big win.

This plant did not leave CA; it hasn't been built yet. A fabrication plant of this nature in Nevada will also have a beneficial effect on the nearby California economy.