The Patriot Post® · Carl's Jr. Flees California's Business Environment

California’s business policies have been hurting the state’s tax streams, and Carl’s Jr. is the latest chapter of that sad saga. Recently, the fast-food chain announced that it was leaving the Sunshine State to head for brighter business climates — specifically Nashville, Tennessee.

“Hamburger fast food chain Carl’s Jr. was founded in California and for years has been headquartered in Carpinteria, California,” Investor’s Business Daily wrote. “The highest income tax rate in California is 13%, so moving to Tennessee, where the tax rate is zero, will save the company millions of dollars on taxes a year.”

And that is millions of dollars California loses in tax money. But that isn’t the only place where the state is losing revenue and destroying the economic activity for thousands. In January, California boosted its minimum wage to $10 an hour, and San Francisco will jack its minimum wage requirement to $15-an-hour by 2018. By mandating businesses large and small pay their employees a certain amount, those business decide to go under, lay off workers or not expand, costing the state streams of income tax revenue. Furthermore, as we noted last month, the U.S. economy needs rising wages for the economy to make a full recovery. Unfortunately, economic policies like those found in California have stifled that.