LAEDC Informs California Leaders 'Nissan’s Departure From California Is Not An Isolated Incident'

More than 80 other business departures caused by uncompetitive tax, regulatory and employee benefit costs.

Los Angeles, CA (PRWEB) November 18, 2005

The Los Angeles County Economic Development Corporation (LAEDC) today sent to the State’s Leadership a list of 80 businesses which have left or are leaving Southern California due to the business climate.

“More than 13,000 jobs will go with these companies,” Lee Harrington, President and CEO of the Los Angeles County Economic Development Corporation. (LAEDC), said.

“What the Legislature doesn’t seem to understand is the tax revenue impact of the job loss,” explained Jack Kyser, senior vice president and chief economist, LAEDC. “A $40,000 job contributes around $5,000 annually to State and local government and schools through the State income tax and sales taxes generated by the employee. The loss of 13,000 jobs at this level costs our public sector some $65 million annually,” he said.

“Every public sector employee should realize their employment and retirement benefits are at risk if private sector job and tax revenue creation goes elsewhere,said Kyser.”

Analysis of the LAEDC list reveals a threatening business shift. In the past, the jobs departing the region have been middle class jobs. Now there seems to be a shift to headquarters and research and development activities.

“The LAEDC recommended that a blue ribbon task force of Republicans and Democrats be appointed to consider changes in California’s tax and employment laws to improve the business climate and attract and retain successful, growing companies,” Harrington said.

“At the same time the Committee should also be asked to develop recommendations for new ways to enhance the State’s revenues that do not add to (and hopefully enable California to reduce) business costs so that we can grow businesses and jobs and address our growing needs for infrastructure, education and other services.”

As an example, a recent study by the LAEDC found that the growth in international trade offered the potential for another one million jobs if we address the modernization of the region’s goods movement system in ways that reduce impacts on communities and the environment.

A four billion dollar state tax credit bond investment as part of a leveraged $11 billion state, federal and private sector finance plan in this infrastructure over the next 10 years to enable continued trade and job growth could actually return $17 billion in tax revenues over the next 30 years. It also makes the state more attractive as a place to live and do business.

About the LAEDC

The LAEDC, the region’s premiere business leadership organization, is a private, non-profit 501 (C) (3) organization established in 1981. Our mission is to attract, retain, and grow business and jobs in Los Angeles County. Since 1995, the LAEDC has helped retain or create more than 100,000 jobs, providing $3.5 billion in annual economic impact from salaries and $65 million in annual tax revenue benefit to Los Angeles County. For more information, please visit http://www.laedc.org.

Editors: For interviews, please call: George McQuade 818-340-5300 or 818-618-9229. For more information about LAEDC please call Nhien Barros at 213-236-4816 email to Nhien.Barros@laedc.org.

For the detailed list of 80 businesses which

have left or are leaving Southern California due to the business climate or the letter to California’s leadership, visit http://www.laedc.org.

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