California Businesses Confronting Tough Decision Amid Rising Crime Rate, Taxes

By Trisha Andrada

Mar 01, 2024 01:30 PM EST

Businesses in California are all in the same boat: they will either have to close their doors permanently or relocate because of the state's high crime and tax rates.

According to the latest figures from RedBalloon and PublicSq. 's Freedom Economy Index, over 86% of California company owners have reported increased crime in their local area. Additionally, 67% of those same entrepreneurs have said they are contemplating relocating their headquarters out of the state.

RedBalloon CEO Andrew Crapuchettes said that 10% of the 80,000 business proprietors in the nationwide poll were in California. Apparently, most of them had been considering or planning to relocate since 2020.

CALIFORNIA
(Photo : PATRICK T. FALLON / AFP via Getty Images)
An aerial image shows snow capped mountains on the horizon behind a view of apartment buildings and housing in the Westlake/MacArthur Park neighborhood.

Also Read: US Inflation Inches Up in January, Marking Smallest Annual Increase in Three Years

Factors Being Considered

A number of factors, including high crime rates, "woke" public education systems, anti-business regulations, and high tax rates, have prompted firms in California to consider leaving the state.

Flavio Carvalho, a lawyer and founder of a legal practice in the San Francisco Bay region, told Fox News that he has considered moving to a different state. "I don't agree with the direction California is going, and I hate the fact that I am forced to support it through my taxes."

Bulletproof Pet Products CEO and CFO Cherie Falwell said he wanted to move the firm for at least the last three to four years. "Things were already expensive here ... We can hardly afford to do business."

Couple Trish and Brandon Aquino operate a digital marketing agency. Trish stated, "It was our financial strife, prospecting struggles, and concern for our children's futures that made us finally consider a move to Frisco, Texas."

Even though California has one of the nation's highest tax burdens, a few employers understand the emotional toll that leaving their hometown can take.

Also Read: US Middle Class Is Better off Under Biden's Leadership Than Trump's: Treasury Sec. Janet Yellen

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