Free Fallin’
What to Know: The government-ordered lockdowns have sent the California economy into a free fall.
The TPPF Take: The COVID-19 lockdown orders are really just an extension of the anti-business sentiment within the California state government and new tax hikes may make it worse.
“With California’s higher taxes, greater red tape compliance costs, higher labor and land costs, and more litigious environment, business analysts estimate that companies can save 32 percent of their operating costs by moving out of California to states such as Texas,” notes TPPF’s Chuck DeVore. “If California does enact a series of tax increases, it may well accelerate the economic damage done by the virus from Wuhan, China.”