[ad_1]
The second richest man in the world moves. This is interesting news in itself, not only from a tabloid point of view, but also from an economic point of view. And if it’s specifically about Elon Musk, the reasons are worth investigating.
We are talking about the man who, if you move your little finger, makes headlines in both American newspapers and American tabloids. But not just the most clickable man in the country. Its inexhaustible merit is that it has revolutionized electric conduction, has been able to reach space from private energy and has shown with many other things that the American dream is true, so it is really worth paying attention to.
Where are you moving and why?
The answer to the first question is simple, not so much to the second.
Musk is relocating his headquarters near Austin, Texas, and there are probably several reasons for that. The first and most obvious would be taxes. This is because Texas, unlike California, does not have state personal and estate taxes. In Musk’s case, this is a compelling reason, as he may show wealth growth of roughly $ 50 billion this year alone. The state of California (in addition to federal tax) imposes an income tax of 13.3 percent, the highest of the 50 US states.
The rate of personal income tax in the state of Texas is the lowest, exactly 0 or zero percent.
The other obvious reason would be Tesla’s new steam plant in Texas, which will begin production next year. Elon Musk has spent a lot of time in Austin thus far and it would save a lot of time moving. Of course, the person concerned was also asked about the reason for this, but he explained his decision with something else:
Silicon Valley already has too much influence in the world! It is time to change.
Elon Musk said in a question to the Wall Street Journal. Indeed, with the decision mature, Elon Musk has long criticized the leadership of the state of California. He thinks they are comfortable, they take it for granted that all the techgurus are here and that young people with an inventive streak want to move here too. Thus, California is no longer doing anything to encourage startups or sustain businesses that are already successful. The state’s Democratic governor, Gavin Newsom, has so far not taken the criticism seriously.
California is not the cheapest place for entrepreneurs, but the best place!
– this was Newsom’s response to criticism of California’s high tax rates and unaffordable property prices. For now, however, it seems the time has come to give it some serious thought. Hewlett Packard also chose to leave Elon Musk, California, whose roots go back to the early days of Silicon Valley. They announced a week before Elon Musk announced that they would also be moving to Texas. And with that, California falls short of the dollars raised in the form of many millions of taxes.
In Elon Musk’s case, the specific and decisive cause may be related to the coronavirus epidemic. In April, as part of the injunction, Tesla was ordered to close its factory in Fresno, which, of course, did not take a very good name. Although he complied with this at first, he later opened the factory in defiance of the authorities and, bribing the state leaders, commented that if he did not like it, they would take him to prison. This did not happen in the end, but the link between Elon Musk and California seems completely frayed, despite being a resident of the state from the first minute of his arrival in the United States.
Following the loss of Elon Musk and Hewlett Packard, many have already begun sounding the alarm regarding Silicon Valley, but let’s not forget.
The parent company of Google, Alphabet, and Facebook are here. Still.
The California governor has so far not responded to questions about Elon Musk’s departure, although he would have something to explain.
(Cover image: Elon Musk. Photo: Britta Pedersen / Pool / Getty Images)
[ad_2]
