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San Jose Mayor Chuck Reed on the business environment in California and efforts to boost job growth in the state.
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The palm trees in the sunshine are great but California has the highest capital gains tax rate in the US currently at 13%.
Highest corporate tax rate on the West Coast.
That was statistics like that it's no wonder that was claim it is here in New York edits.
No surprise that companies and started to -- the state and set up shop.
In more business friendly areas so does the state have any plans to try to reverse this emerging trend Adam Shapiro.
Is live in Palo Alto, California with the mayor of San Jose chuck -- -- at at a.
That's -- we've been -- all kinds of political leaders -- business people we spoke with Gavin -- in the last hour -- does speak with the mayor of San -- -- -- they -- joining us live on Fox Business I wanna start with a statistic that people may be surprised to -- which is that according to the Milken Institute the number one city -- best city for creating maintaining -- San Jose California followed by Austin, Texas perhaps California's -- -- Raleigh, North Carolina Houston Texas and then Washington DC he states getting at least according to officials here a bum rap is -- legitimate -- that businesses.
Are over regulated and overtaxed in this state.
Both straight to be number one but we have to work very hard to stay there we have to be the best place a rose -- -- businesses.
Ensure California's got some problems California is.
Sometimes.
Difficulty worry companies are making their decisions that -- the capital silicon rebellion of nations or world companies want to stay here.
Let UN I had a discussion before we came on air about Intel everybody knows Intel Intel has just had a huge 300 million dollar investment -- and Arizona.
They've had hundred.
Multimillion dollar investment up an -- and those are investments that are not taking place here with the headquartered.
That's our big challenge that companies are here either you're creating jobs -- real question is -- -- those jobs in California but really go someplace else and a case of Intel I'm sure they're spending a lot of money on on equipment.
And unfortunately California has a sales tax on the lots of equipment purchases and that's just -- a -- threat to deal with but we're usually able to overcome net expected.
How many states did see your recollection have a tax on equipment purchases I think there's three states that have those kinds of taxes on a -- purchases -- it will create some exemptions a couple of years ago with a special bill for clean tech manufacturing equipment that's been a big help in keeping -- -- solar companies here in those taxes are important and a company like Intel has been so much money on equipment.
-- can be a big factor in -- decision.
Especially consider that there could be millions hundreds of millions of dollars spent now and or did and that could have been text here in California or at least at that you would have gotten some revenue.
But we're happy to have Intel growing in California maintain -- employment in California so they're still here but.
We're proud of the fact that we export jobs other states are just not happy about it.
So let me ask you about that because the number one motivating factor for a business according to the economists and according to the business analysts in deciding whether to.
Either relocate or at least expand outside of a state.
Is the cost of labor and the cost of labor in California is going up -- is California facing a stranglehold on its future growth.
With debts of a factor but we also see even manufacturing coming back California because -- -- a percentage a labor and -- costs of product is going -- -- We have the most efficient workforce here highest productivity.
And so we use a lot of equipment to be created in Silicon Valley to be able to make products with less -- so let me ask you very quickly as we wrap.
Medium price house -- Phoenix 159000.
San Jose 535000.
How -- -- stay competitive with those kinds of numbers.
Well some areas we can't compete but when -- CEOs look at where they want to place their jobs they start up about wanting to stay here because Rudy innovations gentler world we have the talent pool nobody else has.
And if they can make a work they do.
-- great mayor of San Jose thank you for joining us here on Fox Business is somewhat a throwback to you and yes you are in New York but the sun is out it is warm here that's -- reason enough.
It's just an awful absolutely and -- said Jose sharks are given that thank you to the -- thanks to you at San Jose Sharks sometimes.
