California has been repelling capital through overregulation. The energy sector high-tailed out of the state in recent years under Governor Gavin Newsom’s net-zero policies. Now, even retailers feel forced to evacuate as California becomes increasingly anti-business.
Bed Bath & Beyond announced that it must close all retail stores within the state of California. “This decision isn’t about politics—it’s about reality,” company head Marcus Lemonis said in a social media post. “California has created one of the most overregulated, expensive, and risky environments for businesses in America. It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”
Newsom’s office commented that Bed Bath & Beyond was already a dead business, failing to take any responsibility. To begin, California’s minimum wage continues to rise year after year at a pace unsustainable for businesses. Automation is replacing the human workforce, and some studies have shown that minimum wage workers in California are simply receiving fewer working hours as employers aim to cut costs.
Newsom believes he can continue spending and rescue the state from the debt through taxation. Fleeing businesses can’t pay taxes, and California forces both businesses and residents to pay some of the highest taxes in the nation. All corporations operating in the state must pay a flat corporate income tax rate of 8.84% on net income. Banks and financial institutions pay a bit more at 10.84%. There is an annual franchise tax of $800 for businesses as well. But wait—corporations are still beholden to the 21% federal corporate income tax, which means businesses are paying roughly 29.84% on corporate income taxes alone.
Payroll taxes in California are higher than the national average, largely due to social programs like State Disability Insurance (SDI) and the Employment Training Tax (ETT), which must be paid in addition to Unemployment Insurance (UI). There is a personal income tax withholding of up to 14.63% that employers must withhold from employees as well.
The state was forced to overturn its policy regarding shoplifting and burglary after criminals used the minimum $950 amount for petty theft to avoid felony charges. Countless businesses shuttered their brick-and-mortar locations as a direct result of light-on-crime policies.
Capital flees excessive regulation and it’s almost a no-brainer for corporations to move beyond state lines where operating costs are drastically lower.
Have You Seen James Corbett’s Interview of Etienne? How to Leave the Cage?
Etienne recently appeared on The Corbett Report with James Corbett to discuss his new book: To See the Cage is to Leave It – 25 Techniques the Few Use to Control the Many.
It is definitely one of Etienne’s best interviews ever! If you have ever wanted to share Etienne’s work with your friends, family or colleagues, this is the interview for you. You can get a copy of To See the Cage is to Leave It (press release) by “Going Paid” on Substack AND get access to all FOUR of the Art of Liberty’s Substacks: Important News from the Art of Liberty Foundation, The Daily News, The Daily News Digest, and Five Meme Friday. By “Going Paid” you can get access to the full transcript, all the slides, memes, and videos mentioned in the interview: How to Leave the Cage - James Corbett & Etienne de la Boetie2
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Go paid at the $5 a month level, and we will send you both the PDF and e-Pub versions of Etienne's new book: To See the Cage Is to Leave It - 25 Techniques the Few Use to Control the Many and a coupon code for 10% off anything in the https://artofliberty.org/store/.
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