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Arizona Commerce Authority CEO Sandra Watson discusses the recruiting office in California that encourages companies to move to Arizona.
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This is -- -- Adam Shapiro is live in -- So with the representative of one state trying to snag some businesses.
Adam.
That's right Arizona Virginia they have all this is right here in California -- Help businesses that might consider relocating or expanding into other states.
And joining me to talk about why they consider doing that is the president and CEO of the Arizona commerce authorities several Watson joins us right now thank you for being on Fox Business.
We'll -- wanna point out to our viewers corporate tax rate Arizona right now six point 9% but -- the next couple years it's gonna drop 30%.
California corporate tax rate eight point 4%.
Our business is coming even saying we want some relief get a -- here.
Well we're -- in numerous businesses here in California you're looking at expansion opportunities and environments in which they can succeed.
Arizona we're open for business.
We've got a very pro business side tax them by and then governor and I legislature have been very active in the developed a very aggressive strategy to enhance business opportunities -- -- assay.
We've shown some of the businesses which have expanded into Arizona one that we didn't have on the list though but -- made a huge commitment is Intel.
300 million dollar investment recently to their research and development center there.
And as I ask you about why they would do that perhaps not build it here let's point out that that price for single family home in Phoenix 159000.
Dollars in San Jose.
535000.
Dollars the number one reason.
From our research that business is actually moved they look at taxes.
But it's the cost of labor and the cost of labor can be reflected in the cost thousand has got to pay employees more they have to pay more to live with that one of the ways -- able to get -- expanded to Chandler and leave here.
I believe that in -- other companies -- Arizona continue to expand and an Arizona because of that quality of the labor that they find an Arizona in the -- then the are we have an R&D tax credit in Arizona that's why the bus in the country offers opportunities for businesses who are looking at doing ninetieth -- Together price in the costs of doing business in California vs Arizona Phoenix the commercial real estate per square foot twenty dollars and 85 cents San Jose.
We're near San Jose 251.
Dollars.
And nine cents that was a recent survey of business leaders -- in California 62% said.
This state is very difficult in which to do business so you see an attractive right.
Territory for the pickings what -- with the discussions you're having been businesses what are they asking him.
While there -- talking -- us about bad business climate number 1 but I also am more importantly our our labor.
And they're finding that in Arizona we have a solid -- wildly -- believer in Arizona and they're very happy with the with the labor and the talent in innocent.
And it does -- down the cost of labor -- -- our discussion with you on the web it is wanna point out to you.
That in our researcher -- as businesses rarely jump from state to state -- expanded other states they do sometimes jump.
The number one motivating factor is the cost of labor and one of the threats in California.
Is that the middle class and the lower income.
Thresholds are moving out of California eventually the cost of employee people's gonna go up.
That's something we're gonna talk with Gavin Newsom the lieutenant governor -- here in California coming up later on Fox Business right now but -- throwback to you.
All right thanks very much Adam Shapiro.
