bitkahuna

iTrader: (20)

i said governor and state legislature. the terminator got nowhere with the fiscally clueless socialist loons in sacramento. after a couple of years he gave up.

lol, not at all. toyota made a fiscally sound decision to move away from horrendously taxed and regulated california, with very expensive and heavily taxed real estate, to lightly taxed and regulated texas with tons of room to expand on inexpensive land. they will be nearer their other manufacturing plants, and being more central they have shorter flights to the right coast.

because companies aren't charities, they're in business to make money. there's obviously more to the decision than just money, but i bet that's most of the reason. do you think toyota has a reputation as some kind of altruistic company? puleez

a lot of people apparently if it means cheaper housing, more job security, less traffic, less pollution, less taxes, better leadership.

gengar

When a business is taxed, who pays the taxes? The answer is simple: Consumers and shareholders do. In other words, us.

Why would Toyota want to save on taxes? Simple: Because we want to save on taxes.

pbm317

Unless you just go to the Western Area office, which isn't moving.

toyemp

TFS has a website for info on the move http://tfsnextchapter.org/

I assume TMS has one too but don't know the URL.

UPDATE:

TMS url is http://www.onetoyotafamily.com/

whoster

Definitely concerned for the local economy--lots of Japanese-owned small businesses in the area...

Infra

iTrader: (1)

People will be fine moving when they learn that for the cost of their home in California, they can buy a mansion in Texas.

Hoovey689

iTrader: (16)

They use the SF Toyota Distribution center in San Ramon often too for training which is on my way to work

Joey-E

iTrader: (1)

Huh? Plano is up north, Im in San Antonio the 7th biggest city in the US. Big difference.


Just how much Taxes are they paying and how much are they going to save?

Uhhh seriously? Lol

Why doesn't California deserve Toyota's business? Many Toyota employees are staying put in California.

Sales done equate profit? Do you even know how much porfit Toyota has actually made last year?

Joey-E

iTrader: (1)

What? Who said they were charities? Toyota is a pretty big contributor to charities and non-profits and donates substantially.

"Cheaper housing, more job security, less taxes" etc What are the offsets to this? Will toyota quality be downgraded? Since the cost of living is cheaper, will employees be paid less or have fewer benefits now or in the long run? How much is this new facility going to cost? Will prices now be higher for new models?


These are serious questions you have to consider.

Joey-E

iTrader: (1)

How will a corporation saving taxes help save you being taxed?

Joey-E

iTrader: (1)

Good link and info but some of the wording in the "Questions and Answers" are pretty bad if you can not relocate.

bitkahuna

iTrader: (20)

reuters...

noted this:
and 5% of torrance population is employed by toyota... hardly massive, but of course the move impacts indirectly, all the businesses that support, feed, etc. the company facility and its employees.

article:
Toyota withdrawal a bombshell, economic blow to California city

6:32pm EDT
By Tim Reid
TORRANCE, CA (Reuters) - Toyota Motor Corp's decision to move its North American sales headquarters from California to Texas was met by disbelief in Torrance, this Los Angeles exurb where the Japanese car manufacturer has run its U.S. operations since 1982.
Torrance Mayor Frank Scotto, looking grim, said outside city hall on Monday that he had been blindsided by the move. A few feet away sat Pat Simpson, a Torrance resident for over 60 years, with her head in her hands. "Why do they want to tear this place apart?" Simpson, 72, asked.
Scotto said his first inkling of Toyota's decision to move to Plano, Texas, came last Thursday, when he was told by Toyota to expect a phone call at 9.45 a.m. on Monday - just before the company was to make its decision official.
"At first I thought it was about something else," Scotto said. "Even this morning, despite all the rumors this weekend, we thought it was only going to be part of Toyota moving - not just everything." The decision, he said, was "sad news".
The two biggest employers in Torrance, which has a population of 147,000 according to city figures, are Toyota and Honda. Both have about 4,000 employees. Losing Toyota will mean an annual loss of $1.2 million in tax revenue, Scotto said, but the emotional toll and wider economic impact will be much bigger, he said.
Scotto's son-in-law works for Toyota so the mayor faces the prospect of his daughter and grandchildren moving to Texas. "It's going to affect tens of thousands of people," he said.
About five percent of the city's workforce is employed by Toyota. Last year the city had an annual budget of $271 million, and $121 million of long-term debt.
Scotto, mayor since 2006, thanked Toyota for all it had contributed to the city, including a recent $500,000 donation to help build a new sports complex a few blocks from city hall. Scotto said it is to be called the Toyota Sports Complex, although the sign hasn't been put up yet.
As he spoke to reporters and a small crowd of residents, his words were interrupted by the sound of breaking glass and crunching metal from an auto accident 50 feet away. It was that kind of morning in Torrance.
Whether the city can replace Toyota, and fill the 101-acre business park and headquarters it will leave behind, remains to be seen. Scotto said the city had a short list of companies similar to Toyota that are being courted to replace the Japanese car maker.
But conceding that the battle to keep Toyota was lost before it had even begun - "the train has already left the station," Scotto said - he also said it takes the state of California, not a small city such as Torrance, to stop large manufacturers from leaving the Golden State.
Frank Portillo, a co-owner of Los Chilaquiles Mexican Grill next to the Toyota headquarters said he did not blame Toyota, although he might lose business himself. "The taxes are lower in Texas. There are fewer regulations. It's cheaper for a company there. Why wouldn't they leave California?"


http://www.reuters.com/article/2014/...A3R1EW20140428

bitkahuna

iTrader: (20)

not sure what you're referring to?

i did notice that only 1/3rd of toyota's california employees will be moving.

JessePS

That is one herculean task. I wish all the people affected by this, all the best.

Texas seems nice, but I have only been to Austin so I can't say for the rest of it. I can say the people do seem friendly.

FrankReynoldsCPA

Well Texas hasn't got a corporate income tax(although they do have a franchise tax that maxes out at 1% of net revenue over $1 million IIRC). That's much less than California's corporate tax rate.

That doesn't count the various direct and indirect costs of compliance with state and local regulations. I'm not going to waste the time trying to find and list them all.

Seriously, you talk like Toyota shouldn't try to save money on taxes because they already make a profit.

Businesses are vital to any state's economy, and how does California treat them? Like an ATM machine.

I'm guessing your lack of basic understanding regarding business is related to your love for Hugo Chavez as professed in previous threads.

You can push high volume and have a loss(Big 3 in the 2000s). It's not only a volume game. You also need to reduce your cost per unit. While fixed cost per unit decreases as volume increases, variable costs generally do not.