Cruz Bustamante: NO, please! Arnold: Please Listen!

More from Michael Lombardi [http://www.lombardipublishing.com]

FIRMS LEAVING "GOLDEN" CALIFORNIA

Who the new governor will be doesn't seem to matter much. Companies are leaving California in droves, mostly due to the difficulty of doing business there.

Other states are taking advantage of the situation. Arizona, Nevada and many others are openly extending a big welcome to California companies that just want to get out from under the maze of California laws and expenses.

The usual complaints of California companies are high taxes, elevated energy prices, high-priced real estate, and lots of government red tape.

In a recent survey conducted by the California Business Roundtable, 20% of the companies surveyed said they wanted out of the state. That is the highest figure ever recorded by that group.

• Fidelity National Financial of Santa Barbara said that it is moving because of the "oppressive" business environment.
• Noranda Inc. said it will move its automotive wheel production facility to Mexico because of the high cost of worker's compensation insurance.
• Buck Knives is moving to Idaho from San Diego because of tax incentives and a lower cost of doing business.
• Commercial and industrial customers in California pay more than double the national average for electricity.
• Worker's Compensation Insurance costs have posted double digit annual increases since 1997. They are up by 70 per cent since 2000.
• The Tax Foundation, a taxpayer advocacy group, did a survey and found that California ranked 49th in business-tax friendliness.
• General Electric Co. is considering moving its Global Nuclear Energy Division from San Diego to North Carolina for a $500,000 incentive.
• Companies are worried that the huge California deficit will be a drain on business for years to come. Companies that want to expand are looking for friendly states that will help them.

David Biggs, chairman of the California Association for Local Economic Development, said he's heard most of this before. He says that people will stay in California because of the lifestyle, climate and creative work force.

I have heard all that before, too. It's called "California dreamin".

The fact is that companies are not waiting for the election to see if Arnold wins. No matter who wins, it will not make much of a difference.

I've been saying this for years, and nobody's been listening. Back to the religions of the Democrats, Populists, and the like.... no hope of communication.

Quoted from Michael Lombardi

California Lt. Governor Cruz Bustamante says that if elected (he's running against Arnold) he would seek to raise taxes by $8 billion. He would raise taxes on the state's wealthiest to 11 per cent, along with more taxes on alcohol, cigarettes and commercial property.

What are his chances? None. California is already facing a drain in businesses and population. People are leaving the once - Golden State for greener pastures. Any huge attack on business and the wealthy will accelerate this drain.