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Posted by: thepinetree on 11/20/2009 09:32 AM
Updated by: thepinetree on 11/20/2009 11:01 AM
Expires: 01/01/2014 12:00 AM
Cost of State to Small Business is $492.994 billion per year or $134,122 per or $134,122.48 per small business and 3.8 million jobs
Sacramento, CA...A report commissioned by the state and available on the State's SBA website lays out the true cost of doing business in the state. This was discussed at length at a local Chamber of Commerce meeting this week. It is worse than many had believed. Maybe there is a reason the state is $20-30 Billion in the red. Is it time for a balanced budget amendment and a fresh look at the regulatory environment in California? In Calaveras we recently lost several high tech, robotic manufacturing jobs to Idaho purely on the cost's of manufacturing in California. The company was based in Arnold and didn't want to leave the state but felt they had no choice...
Click above for the report...
California needs to be able to compete globally and with other states we can but we first need to realize the magnitude of the problem....
"This study measures and reports the cost of regulation to small business in the State of California. It uses original analysis and a general equilibrium framework to identify and measure the cost of regulation as measured by the loss of economic output to the State’s gross product, after controlling for variables known to influence output. It also measures second order costs resulting from regulatory activity by studying the total impact – direct, indirect, and induced. The study finds that the total cost of regulation to the State of California is $492.994 billion which is almost five times the State’s general fund budget, and almost a third of the State’s gross product. The cost of regulation results in an employment loss of 3.8 million jobs which is a tenth of the State’s population. Since small business constitute 99.2% of all employer businesses in California, and all of non-employer business, the regulatory cost is borne almost completely by small business.
The total cost of regulation was $134,122.48 per small business in California in 2007, labor income not created or lost was $4,359.55 per small business, indirect business taxes not generated or lost were $57,260.15 per small business, and finally roughly one job lost per small business. This study provides the most comprehensive and complete analysis of the total regulatory burden in California."
The complete study is available by click here or on the State's Website Here!
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Duh!
Posted on: 2009-11-21 12:40:32
By: Anonymous
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Even a 2nd grade kid could figure out it was way too expensive to do business in this state with all of the high taxes, over-regulation, and environmental controls and fees.
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Re: Duh!
Posted on: 2009-12-10 07:45:00
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