A first-of-its-kind report is detailing the high cost of doing business in California.
According to the Governor’s Office of Small Business Advocate, the total cost of state regulations on businesses is $493 BILLION and 3.8 million jobs per year.
That’s an average of $134,122 per California business, $13,801 per household and $4,685 per resident each year.
More from the official report, which was mandated by a 2006 law:
The total cost ($493 billion) is almost 5 times the state’s general fund budget and a third of the state’s gross product.
The 3.8 million jobs lost equals 1/10th of California’s population. California has about 14 million jobs, down 1 million from the peak in July 2007.
The total cost breakdown is $266.5 billion in direct costs of various regulations, $210.5 billion lost labor income and $16 billion in business taxes the state would get without the regulations.
What are we to conclude? California’s state government, run by Democrats and government employee unions, are torturing private businesses. Not only is California the 2nd most unfriendly state to businesses, red tape is killing millions of jobs.
No wonder Michigan and Nevada are running ads inviting California businesses to move to “greener pastures” in the cold Great Lakes and the hot Nevada desert!
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