California's new system has some key differences from Texas' programs. The so-called California Competes program is structured as a tax credit rather than an upfront cash grant. That gives the state more leverage if companies don't come through on their end of the agreement, California economic development officials say.Well, since TX doesn't have an income tax and only a tiny corporate income tax, what else can we do?
"We're not writing a check," said Will Koch, a deputy director who oversees the program in Gov. Jerry Brown's Office of Business and Economic Development, during a June meeting.
The program also has more specific requirements outlining the salary levels required to obtain funding.
Sunday, August 24, 2014
California vs. Texas in fight to attract and retain businesses
I have to agree with this LAT piece. Using monetary incentives to draw businesses to your state is an idea that can turn around and bite you bad. But the CA idea is....ok. For a cash strapped state with high taxes, what else can you do?