**UPDATE**
After removing his name from consideration to serve as President Trump’s Labor Secretary, Andy Puzder announced his retirement as the CEO of CKE Restaurants, a move that has been in the works for at least a year.,
It’s no secret that California is a bastion of liberalism, with high taxes and burdensome regulations that crush economic growth and development. In recent months, American companies like Nestle have abandoned the Golden State in search of a place that has a pro-business environment.
Now, another iconic American brand, CKE Restaurants, the corporate parent company of fast food chains Hardee’s and Carl’s Jr., is leaving California and moving to Nashville, Tennessee.
Iconic CA Company Carl’s Jr. Flees ‘Golden State’ for TN https://t.co/ABM9Ea8TWX pic.twitter.com/Ze2jnt7amX
— ALLISON AMBER (@AAmber_00) March 21, 2017
From Investor’s Business Daily:
We got more evidence of that this week when CKE Restaurants, the corporate parent of Hardee’s and Carl’s Jr. restaurants, announced that they are relocating to Nashville, Tennessee.
Hardee’s will move its headquarters from St. Louis, Missouri, to Nashville, Tennessee, one of America’s fastest growing states.
Oh, and did we mention that the state has no personal income tax?
Meanwhile, the Carl’s Jr. move puts more egg on the face of California and the political class in Sacramento. Hamburger fast food chain Carl’s Jr. was founded in California and for years has been headquartered in Carpinteria, California. 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.
Yes, we know that CKE’s official line is that the firm is relocating because it has less need for office space as it consolidates operations. But the company executives say this with a wink. Tax savings are a big factor, as is the stifling regulatory environment on the left coast, where businesses are treated like villains and rich people as cash dispensers for big government programs. It’s not a coincidence that CKE’s CEO Andy Puzder has been one of the leading critics of high taxes and onerous rules in Washington D.C. and Sacramento.
It should come as no surprise that major American companies would want to leave California, given its poor business climate. While the Golden State continues to promote policies that turn businesses away, other states such as Tennessee and Texas are creating an environment that encourages companies from across the country to relocate to their state.
President Trump is hoping to take what states like Tennessee and Texas have done by creating a national business climate that discourages American companies from moving to other countries. Throughout the 2016 campaign, then-candidate Trump criticized the high corporate taxes and regulations that hinder American companies, and pledged to eliminate the regulations that prevent American companies from expanding domestically.
If states like California want to remain competitive, they should lower corporate taxes and reduce regulations. If such changes do not occur, the liberal state will continue to bleed companies left and right for many years to come.
Do you support CKE Restaurants’ decision to leave California and move to a state with a pro-business climate? Share your thoughts below!