Nevada’s aggressive pro-business policies, and the agencies charged with selling the state, have produced decidedly mixed results. While the state has made some gains in reducing unemployment, challenges lie ahead.
Nevada’s aggressive pro-business policies, and the agencies charged with selling the state, have produced decidedly mixed results. While the state has made some gains in reducing unemployment, challenges lie ahead.
As described in Part II, several businesses — such as Starbucks and Apple — have expanded operations in Nevada as a result of direct lobbying from different business development agencies.
Smaller firms have moved to Nevada, as well. Orange County-based Kareo, an online back office service provider for health care offices, recently announced plans to expand 112 jobs to Southern Nevada. Altogether, thousands of jobs have left California for Nevada. In fact, California lost 5.2 percent of its businesses in 2012 (though some were closed and did not move).
Bureau of Labor Statistics data shows an improving Nevada. Down from a high of 14 percent two years ago, unemployment stands at 9.5 percent. There are more jobs in 10 out of 11 sectors of the economy than there were 12 months ago, or even two years ago. Government, manufacturing, business services, education and mining are all doing well, for example.
But there is more than just businesses and jobs coming to Nevada from California — people are too.
Population growth
While California’s population is flat-lining, Nevada’s is projected to grow. At least part of that reason is the new taxes enacted last year in California.
From a Fox News report describing the effects of Proposition 30:
Nevada tax accountant George Ashley said he’s received more than 100 inquiries from higher-earning Californians about the possible tax advantages and feasibility of relocating to a state with lower taxes.
“We have had a 10-fold increase from various parts of California, particularly Los Angeles and the Bay Area where many people are seeking a way to leave the state,” said Ashley, who lives just over the California state line in Lake Tahoe, Nev. “They are fed up with the situation and they feel like they are being unfairly treated.”
This trend has real impacts: Between 1999 and 2009, California lost $27 billion in tax revenue because residents moved to other states. In that same time period, Nevada’s added $12.4 billion to its coffers from residents of other states that moved to the Silver State.
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