Radical left-wing cesspool California has lost yet another major company due to horrible policies that often punish businesses for their success instead of rewarding them. An apparel company in the Golden State has decided to pack up its headquarters and flee to Texas, but not before its CEO obliterated the state’s government about its business climate.
“Doing business in the state of California sucks,” Hil Davis, CEO of Digital Brands Group, said in an interview with Fox News Digital. The company decided to move its headquarters over 1,300 miles away from its home in California to Round Rock, Texas, located just north of Austin where it leased 70,000 square feet of warehouse and office space.
Davis stated that the facility in Texas costs roughly the same as the company’s former location in Vernon, California, but provides the company with more room to expand its collegiate sports clothing operation. However, for Davis, rent was only one issue with doing business in California. He then noted the Golden State’s high cost of living, long commutes for employees, rising legal costs, and other expenses.
“You start to add all those things up,” he said during the interview, according to Trending Politics News. “It doesn’t work. It doesn’t make sense. It’s too hard.” The Digital Brands Group move is fueling an ongoing debate about the negative impact of California’s taxes, regulations, and cost structure leading to businesses leaving the state and heading for places like Texas with lower costs.
And that debate is getting more heated as the state’s government considers a proposed one-time tax of up to 5% on residents who are worth more than a billion dollars. Those in favor of the tax say it could raise billions in funding for health care and other public programs. However, critics say it could do the opposite and encourage the state’s biggest taxpayers to leave, meaning there will be less tax revenue.
Gov. Gavin Newsom, a hard leftist, has opposed the measure, stating it could potentially push wealthy residents and investments out of California. Data from the Internal Revenue Service (IRS) shows a steady flow of taxpayers are already leaving the state. Los Angeles County has the largest net taxpayer loss in the U.S., with 17,496 more tax filers leaving for other areas of the nation than moving in.
When those taxpayers fled the state, they took with them almost $1.9 billion in income with them. Other big counties around the state also posted major losses. Orange County, for example, had a net loss of 11,618 tax filers, while San Diego County lost 9,401. Riverside County lost 8,968 and San Bernardino County lost 8,462.
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However, Davis said that despite all of the regulations and taxes, he doesn’t expect to see an explosion of folks rushing out of California. “I don’t know if there’ll be, like, an explosion,” he went on to say. “I just think it’ll be a constant leak.” He then said that Digital Brands Group will still keep some of its production operations in L.A. despite moving its headquarters to the Lone Star State.