Caterpillar, Boeing, Raytheon revive high-tax state exodus

As a growing number of businesses plan to relocate or expand operations in new states with business-friendly policies, the Job Creators Network warns that high-tax states could face economic contraction.

“Over the past two years, dozens of leading companies have moved from high-tax states like New York, New Jersey, Illinois and California to states like Florida, Texas and Tennessee with lower taxes and fewer regulations. For every big name that leaves, hundreds of small businesses that people haven’t heard of are also moving,” JCN Chairman Alfredo Ortiz told FOX Business. “As a result, the economies of low-tax states are booming, while those of high-tax states are shrinking.”

Virginia Governor Glenn Youngkin. (AP Photo/Steve Helber/AP Newsroom)

Macaulay Porter, the press secretary for Virginia Governor Glenn Youngkin, told FOX Business that the Commonwealth has created 80,000 jobs since its inauguration. Companies that have announced plans to move their global headquarters or build facilities in Virginia since Youngkin took office include Boeing, Raytheon Technologies, LEGO, Hamilton Insurance Group and Rocket Lab USA.

Teleprinter Security Last To change To change %
BA THE BOEING CO. 137.12 +0.25 +0.18%
RTX RAYTHEON TECHNOLOGIES CORP. 92.22 -0.78 -0.84%
RKLB ROCKET LAB United States 4.09 -0.06 -1.45%

“Governor Youngkin’s business expertise, his commitment to lowering the cost of living, expanding employment opportunities, reducing regulations, fostering economic growth and workforce development make the Virginia such an attractive place for business,” Porter said.

Boeing, Virginia

Boeing’s new 777X. (Credit: Boeing)

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Meanwhile, Texas has attracted 250 new headquarters, including 54 Fortune 500 companies, under Governor Greg Abbott, with more announcements in 2021 than any other year, according to its press secretary and senior communications adviser Renae. Eze.

Texas Governor Greg Abbott

Texas Governor Greg Abbott speaks at the monthly meeting of the Houston Region Business Coalition last year. (Brandon Bell/Getty Images/Getty Images)

Caterpillar recently announced plans to move its global headquarters from Deerfield, Illinois to Irving, Texas later this year. Other companies that have moved to the Lone Star State are Tesla, Oracle, and Hewlett Packard Enterprises.

Teleprinter Security Last To change To change %
CAT CATERPILLAR INC. 187.86 -8.52 -4.34%
TSLA TESLA INC. 708.26 -2.85 -0.40%
ORCL ORACLE CORP. 66.46 -1.26 -1.86%
HPE HEWLETT PACKARD ENTERPRISE CO. 13.72 -0.18 -1.29%

“Texas remains number one because of the unmatched competitive advantages we offer: no corporate or personal income taxes, a predictable regulatory climate, and a young, growing, skilled workforce,” said Eze at FOX Business. “We look forward to even more major economic announcements this year as Texas remains the nation’s economic engine.”

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Looking ahead, Ortiz predicts that companies moving their global headquarters will follow a broader trend, with Georgia, Iowa, Arizona and South Dakota set to benefit due to their “free market policies.” in addition to Texas and Virginia.

“Policymakers should study business-friendly policies such as tax cuts and deregulation implemented by states where businesses locate and emulate them to boost economic growth and living standards,” added Ortiz.

Ortiz’s comments come as Bank of America Global Research strategists raised the odds of an economic slowdown to 40% in 2023, gross domestic product – the broadest measure of goods and services produced in a country – slowing to almost zero in the second half of next year.

More than 60% of executives expect a recession in the next 12 to 18 months, according to a survey of CEOs and other senior executives conducted by the Conference Board, a business research firm.

Fox Business’ Megan Henney contributed to this report.

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