According to Dan Walter’s article in today’s Sacramento Bee:
The latest survey on state taxes has been issued by the conservative Tax Foundation, dealing with what it calls the ‘business tax climate’. Ironically, the Tax Foundation found that California’s business tax climate, relative to that of other states, has worsened during Schwarzenegger’s governorship, from 38th worst in 2003 to 45th today among the 50 states. That said, the specific proposals that Angelides has made on personal and corporate taxes would probably push California even lower.
Taxes, of course, are not the only factor in corporate decisions. Work force skills, labor and workers’ compensation costs, housing costs, proximity to markets, transportation and many other tangible and intangible considerations come into play. But taxes can play a major role when other factors are equal, especially since California is surrounded by states – Oregon, Nevada and Arizona – that have substantially lower business tax burdens.