Clear Investment Group’s Post

While Texas is a proven great place for business, this article clearly shows some areas for improvement, such as tax structure, workforce development for existing residents/workers and perhaps some short sightedness in evaluating incentive policies by some communities. Communities cannot control all market factors and must acknowledge that they may be a good fit for some, but not all industries/companies. Incentives should be performance based, and monitored for compliance. If a company doesn’t perform, as with all contracts, corrective measures or penalties should maintain a professional relationship.

The 'Big Read' in the FT this morning is on the big state of Texas, which is now over 30 million in population and world's 8th largest economy. As a neighbor and former resident with half my family from Texas--other half including me born in CA, I'll fill in some blanks here. First of all, there are no economic miracles. When the word miracle is used to describe an economy, it's usually conflicted stock traders or investors describing a debt bubble like China, but that's not the case with Texas. The economic success in Texas is mostly just good old-fashioned competitive strategy that exploits the weaknesses of others--mostly California. There is nothing miraculous about preventing NIMBY politics, high taxes, fiscal malfeasance and extreme social activism from damaging a state's economy. CA has made it easy to exploit its weaknesses, and TX isn't alone in doing so. AZ has long experienced business relocation from CA, as has NV and others. Other advantages in TX for corporate relocations include much greater affordability than CA or NYC. When F500 companies move their HQ to TX or another lower cost state, it's like providing a big raise for all of the employees who move. Combined with very high taxes in CA and assuming an employee buys a similar home, lower costs equate to something like a 25% increase in net income on ave. The corporation also experiences substantial savings. Not having your kids indoctrinated by state schools into extreme cult-like belief systems is included -- free of charge. In addition, although not all corporations pursue incentives, TX has very aggressive relocation incentives, including cash. However, it has one major flaw that will damage TX over time -- incentives are designed for mature companies. As an example of how this plays out over time, despite many large high profile relocations over the past decade when TX had more F500 HQs than any other state, CA has overtaken TX again with 57 F500 HQs. TX and NY are tied with 52. That's due to CA targeting younger fast growing companies while TX targets older, slower growing companies. TX has a surprisingly weak offering for tech startups -- especially lean companies that are less risk. Switzerland also targets mature corporations and similarly has struggled to compete in attracting and keeping top tier younger companies. Some may remember that I pointed out this weakness several years ago when we looked at relocation incentives. Another weakness in TX is infrastructure--particularly energy, which is ironic given the massive energy industry footprint in TX. That's due almost entirely to governance (TX is the leader in wind energy now as well as O&G). So no, TX isn't a miracle. It's just a large state that learned some tough lessons in the boom/bust oil business and took logical steps to diversify (something NM has failed to do), but every state has challenges.

The FY2025 Illinois budget that passed earlier this week includes $500M to build a quantum computing campus — an investment that will help fuel the continued growth of the Chicago region’s vibrant quantum ecosystem and amplify the impact of #TheBlochQuantum, a U.S. Economic Development Administration-designated Tech Hub that is the only #quantum innovation team in the nation rallying entire industry sectors around our most pressing global challenges.    Illinois’ latest commitment to supporting quantum innovation and business attraction — the state previously committed $200M for quantum facilities — sets #MidwestQuantum apart, further establishing the region as a central driver of US leadership in quantum technology.   #EDATechHubs #TechHubs #TheBlochQuantum

At the very beginning of my career, I was assigned to write a story about an innovation that was on the cusp of changing the world. It had been decades in the making, and we were right at the inflection point — we could see the early glimmers of its transformative potential, but it was hard to understand how exactly it worked, we didn't have a frame of reference for understanding its potential impact, and it was hard to know which predictions would actually pan out. My dad, a newspaper editor, doubted that we'd ever actually get our news online, and I remember doubting that I would ever do my shopping on this "World Wide Web." It certainly never occurred to me that I'd eventually carry a device in my pocket (and one on my wrist!) that contained every newspaper in the country, entire shopping malls, the ability to connect with just about anyone in the world, vast libraries of knowledge on just about every topic, my medical records, my credit cards, music collections, movies, TV shows, clocks, cameras, and calendars. I simply couldn't imagine being able to order groceries, meet with my kids' teachers, or control my home's HVAC system while sitting g at work. I came to the Chicago Quantum Exchange in early 2023 because the old reporter in me saw a similar story, and this time it was unfolding right here at home. I wanted to be a part of it. Quantum technologies have the potential to revolutionize multiple industries — from detecting cancer at its earliest stages to protecting sensitive financial information to securing our energy grid — and the Chicago region is at the center of this activity. Our institutions are working together to harness these innovations to solve big global challenges. Chicagoland's regional #quantum ecosystem has seen more than $1 billion in state, federal, and corporate investment; earned a federal designation as a US #EDATechHub for quantum technologies; and built one of the country’s largest quantum-ready talent pipelines, awarding some 60,000 degrees and certificates annually in quantum-relevant skills. Many of the leading experts in quantum technologies are here, as is one of the nation's longest quantum networks and four of the nation's 10 quantum research centers, more than any other region. Fortune500 companies, quantum startups, and companies who will ultimately use this technology are devoting significant resources -- and #TheBlochQuantum Tech Hub is building the nation's largest community college-based quantum program, ensuring that everyone will have access to the tens of thousands of quantum jobs that will be created here over the next decade. The passage of the state budget last week -- with a half billion dollars for a quantum campus in Illinois -- was another step toward this quantum future, which is projected to to create $60 billion in economic impact over the next decade. Buckle up, folks -- this is a big deal, and it's good for our region and our country. #EDATechHubs #TechHubs #MidwestQuantum

Why have so many tech workers been leaving the West Coast? Many think it’s the taxes that are driving everybody to move. But that’s not the most universally decisive reason. I think we need to abstract up a layer and look at what is ultimately driving people to move. Take Rex as a case in point. We were located in San Francisco, CA & Seattle, WA (where I personally lived after moving from SF). What a lot of people don’t realize about Washington State is that it does not have a state income tax. What made us move was: 🙏 Faith 👪 Family 🦅 Freedom We wanted to be located in a state that not only respects these three important areas but celebrates them. For our employees and their families to truly flourish, we knew living in a state like Texas would be a huge benefit. In the long term, faith, family, and freedom are going to continue to be the key drivers moving people into states that are long on people and short on government. #entrepreneurship #leadership #siliconvalley #texas

In #California, #Innovation #Economy #Firms Receive $150M In #Grants, #TaxCredits: Recipients of the state's #CalCompetes #funding include companies #developing and #manufacturing #electric #aircraft, #semiconductors, #AI, and more. #CorporateRealEstate #EconDev #SiteSelection California Governor's Office of Business and Economic Development (GO-Biz)

𝙸-𝙶𝚄𝚈𝙳 𝚂𝚃𝙰𝚃𝙴 𝚂𝙴𝚁𝙸𝙴𝚂: 𝚃𝚎𝚡𝚊𝚜 Texas is the second largest state in the US in terms of size and population. In 2023, Texas had an estimated population of over 31 million! In Texas, the city of Austin is emerging as the new Technology hub and is becoming Silicon Valley’s new rival as many businesses are relocating from there to Austin. The tax that businesses are subject to in Texas are extremely low compared to other states, is formally known as “Franchise Tax” and there is no personal income tax. There are many factors to be considered when deciding where to locate and incorporate your business in the US. If you need help in expanding your business to the US, visit our website today! Or, reach out to our support team who would be more than happy to answer any questions or queries! 📧 support@i-guyd.com 🌐 www.i-guyd.com #USA #Texas #relocating #businessexpansion #usanetwork #business #businessowner

𝙸-𝙶𝚄𝚈𝙳 𝚂𝚃𝙰𝚃𝙴 𝚂𝙴𝚁𝙸𝙴𝚂: 𝚃𝚎𝚡𝚊𝚜  Texas is the second largest state in the US in terms of size and population. This year, Texas had an estimated population of over 31 million!  In Texas, the city of Austin is emerging as the new Technology hub and is becoming Silicon Valley’s new rival as many businesses are relocating from there to Austin. The tax that businesses are subject to in Texas are extremely low compared to other states, is formally known as “Franchise Tax” and there is no personal income tax. There are many factors to be considered when deciding where to locate and incorporate your business in the US.  If you need help in expanding your business to the US, visit our website today! Or, reach out to our support team who would be more than happy to answer any questions or queries! 📧 support@i-guyd.com 🌐 www.i-guyd.com #USA #Texas #relocating #businessexpansion #usanetwork #business #businessowner 

𝙸-𝙶𝚄𝚈𝙳 𝚂𝚃𝙰𝚃𝙴 𝚂𝙴𝚁𝙸𝙴𝚂: 𝚃𝚎𝚡𝚊𝚜 Texas is the second largest state in the US in terms of size and population. In 2023, Texas had an estimated population of over 31 million! In Texas, the city of Austin is emerging as the new Technology hub and is becoming Silicon Valley’s new rival as many businesses are relocating from there to Austin. The tax that businesses are subject to in Texas are extremely low compared to other states, is formally known as “Franchise Tax” and there is no personal income tax. There are many factors to be considered when deciding where to locate and incorporate your business in the US. If you need help in expanding your business to the US, visit our website today! Or, reach out to our support team who would be more than happy to answer any questions or queries! 📧 support@i-guyd.com 🌐 www.i-guyd.com #USA #Texas #relocating #businessexpansion #usanetwork #business #businessowner

"[Without #FullExpensing] my small business, like countless others in #Ohio & across the country, will have a tough choice to make in order to stay afloat."   #Congress: America's small-and medium-sized businesses cannot wait any longer, the time to make #FullExpensing permanent is NOW!   Read more from President & CEO of Event Source John N. Bibbo here: https://lnkd.in/ehn9xUCs   #InvestToGrowUS #taxpolicy