[Politech] Thomas Lipscomb on why NY, CA are anti-jobs and losing tech firms

From: Declan McCullagh (declan@private)
Date: Mon Jan 31 2005 - 20:49:41 PST


-------- Original Message --------
Subject: RE: [Politech] T.J. Rodgers on how hostile California politicos 
are totech firms
Date: Fri, 28 Jan 2005 12:21:21 -0500
From: Thomas Lipscomb <tom@private>
To: Declan McCullagh <declan@private>

Declan:

Unfortunately, Democrats have caught the "European disease" and don't seem
to have developed a paradigm yet that incorporates the growth of wealth as
yielding greater returns. The Club of Rome made the same mistake back in the
1960s proposing that the limitation of resources required cutting smaller
and smaller slices of a diminishing pie to maintain a "socially just civil
society."

We have now had almost a half century of examples that lower taxes yields
higher returns, and that investment money follows real incentives rather
than scenic locations and lying local government. Real European businessmen
are now investing in plants in the United States and Europe is atrophying as
more and more of its capital and major corporations flee to more advantages
sites that remain competitive in the global economy.

New York is just as bad or worse than California. Having founded and served
as CEO of two companies based on my patents that I originally located in
NYC, both companies have now moved out of state, one to Pittsfield MA and
the other to Atlanta GA.

I would certainly never set up a company in either NY or California today.

Thomas Lipscomb, Fellow, Annenberg Center for the Digital Future at USC

> -----Original Message-----
> From: politech-bounces@private
> [mailto:politech-bounces@private]On Behalf Of Declan McCullagh
> Sent: Friday, January 28, 2005 11:26 AM
> To: politech@private
> 
> There's an interesting article in the San Jose Mercury News. As far as
> I can tell, the state promised to give certain companies (Intel,
> Cypress, etc.) a tax break if they kept their operations in California
> as opposed to sensibly relocating to an area that is less hostile to
> business. So the CEOs decided to take California up on the offer and
> kept some of their operations in the state that otherwise would have
> ended up elsewhere.
> 
> Now a handful of Democrats are yowling that companies are getting tax
> refunds, even though the revised law was approved by the entire
> Democrat-controlled Assembly. I don't know the details of the
> situation, but it seems to me that if state politicos want to keep
> well-paying jobs in California, this isn't exactly the right
> approach. At the very least, they could say "Okay, we're going to try
> to deny you the refunds but want to work with you to make California
> more competitive in terms of retaining jobs." Of course they're not.
> 
> Here's an excerpt:
> 
> http://www.mercurynews.com/mld/mercurynews/news/10736766.htm?1c
[...]

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