Perry visited with executives from several large medical device companies, said Mark Cafferty, chief executive of the San Diego Regional Economic Development Corp. Perry talked to the companies about the benefits of relocating to Texas, a state with no corporate income tax, relaxed environmental regulations and reduced land costs, Cafferty said.
“(Perry) certainly was here. He certainly met with CEOs of companies within San Diego, seemingly with a heavy emphasis on the biotech industry,” Cafferty said. “Our region has a target on our back. And people are coming in very charismatic to lure jobs away. While we do the best we can locally at EDC, we need state leadership to fight back.”
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Was watching Art Laffer on CNBC Thursday where he was discussing this issue and repeated the story about him moving from CA to TX because of the “tax-friendly” environment, and how Texas was “growing” jobs. He stated explicitly that low taxes create an environment for job growth.
What Laffer and Perry seem to miss is that they are NOT growing jobs. They are simply moving existing jobs around. If low taxes could actually GROW NEW JOBS, that would be something to crow about, but I have yet to see any evidence at all that low taxes grow the economy or create new jobs. To the contrary, history has shown repeatedly that some of the highest tax rates have coincided with some of the most prosperous times in history…while periods with the lowest tax rates have led to massive economic disruptions, credit bubbles, and huge disparities in wealth and income.
If Texas is so great at growing new jobs, why is Perry out here trying to pilfer employers/jobs from California? Shouldn’t he have his hands full in Texas with all the NEW companies and jobs being created there?
I’d like to see an idea from the right explaining how NEW jobs can be created rather than simply moving them from one state to another. Moving jobs around is NOT “growing the economy.” Some fact-based evidence to show how any of their ideas would actually work in real life would be nice.
