**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!
Oh ya, another prediction of California’s demise, just like I’ve been hearing prematurely for 30 years. The Pudz was going to move Carl’s JR headquarters to Texas a year or two ago, but I guess Tennessee bribed them with better tax incentives. Of course, most of this is about CEO Puzder and his cohorts not having to pay state income tax on his $7 million plus annual compensation. Contrary to the article’s misinformation, the lower income tax rate of TN doesn’t save the company money, but it puts a lot of money back into the pocket of its CEO. Carl’s Jr still makes more money from the L.A. market than any other metro and will continue to employ thousands of Californians and pay California taxes for its franchise stores. Carl’s Jr already has another HQ operation in St. Louis from its Hardees acquisition. Let’s see how that recruitment of top talent goes in TN compared to California. Despite the right-wing’s deepest hopes and desires, California companies continue to out-innovate and compete with every other region of the nation. We win so much, the nation is sick of us winning!
Ha! Try the UK wher the MIMIMUM personal tax Rate is 20% and sales tax is 17.5 %. At least, I think that’s what it is! How the hell do we exist and where do US states get their money?
Life is so much better in the South! Please don’t spill our secret!!
Gosh, at the same time Dayton Power & Light is closing J.M. Stuart and Killen power plants in mid-2018 and layoff 490 workers, in OHIO.
Heard of United Technologies? Well they are closing the Huntington, Indiana plant where 700 people work.
Remember Carrier Corp and Trump? Indiana will give Carrier $7 million in tax breaks so that they can cut 550 jobs. What?
And more layoffs are coming in Indianapolis, Indiana at the 350 worker Rexnord industrial bearings plant which is still moving to Mexico, despite the silence from Trump.
Way to go, Trump.
With the money that the business can save by getting out of California, they will be able to expand their operations. This is what the economy needs to get it going. Any business which wants to make it’s self secure and profitable must invest in them selves., and the only way to do that successfully is to expand re-inforce their foundations with employees who are loyal to the business. No one has ever been paid by a business which has gone broke, and TAX’s can do that quicker then any thing else.
I have always wanted to try their food but they are not available where I live and I never had the chance while in California. Hopefully now they will expand to other parts of the country and open some restaurants in more states.
I think it is a great idea to move, then they maybe able to expand so we will be able to find their great hamburgers more easily.
good move Ca is a sewage storage are now
Trey Gowdy is the smartest and most honest one in that hearing. I hope that James Comey and the rest of his bunch get Hoovered up and spit out before the whole place is gone to hell. The heck with keeping your enemies close. Kick the barstewards OUT!
Oh ya, another prediction of California’s demise, just like I’ve been hearing prematurely for 30 years. The Pudz was going to move Carl’s JR headquarters to Texas a year or two ago, but I guess Tennessee bribed them with better tax incentives. Of course, most of this is about CEO Puzder and his cohorts not having to pay state income tax on his $7 million plus annual compensation. Contrary to the article’s misinformation, the lower income tax rate of TN doesn’t save the company money, but it puts a lot of money back into the pocket of its CEO. Carl’s Jr still makes more money from the L.A. market than any other metro and will continue to employ thousands of Californians and pay California taxes for its franchise stores. Carl’s Jr already has another HQ operation in St. Louis from its Hardees acquisition. Let’s see how that recruitment of top talent goes in TN compared to California. Despite the right-wing’s deepest hopes and desires, California companies continue to out-innovate and compete with every other region of the nation. We win so much, the nation is sick of us winning!
Ha! Try the UK wher the MIMIMUM personal tax Rate is 20% and sales tax is 17.5 %. At least, I think that’s what it is! How the hell do we exist and where do US states get their money?
Life is so much better in the South! Please don’t spill our secret!!
Gosh, at the same time Dayton Power & Light is closing J.M. Stuart and Killen power plants in mid-2018 and layoff 490 workers, in OHIO.
Heard of United Technologies? Well they are closing the Huntington, Indiana plant where 700 people work.
Remember Carrier Corp and Trump? Indiana will give Carrier $7 million in tax breaks so that they can cut 550 jobs. What?
And more layoffs are coming in Indianapolis, Indiana at the 350 worker Rexnord industrial bearings plant which is still moving to Mexico, despite the silence from Trump.
Way to go, Trump.
With the money that the business can save by getting out of California, they will be able to expand their operations. This is what the economy needs to get it going. Any business which wants to make it’s self secure and profitable must invest in them selves., and the only way to do that successfully is to expand re-inforce their foundations with employees who are loyal to the business. No one has ever been paid by a business which has gone broke, and TAX’s can do that quicker then any thing else.
I have always wanted to try their food but they are not available where I live and I never had the chance while in California. Hopefully now they will expand to other parts of the country and open some restaurants in more states.
I think it is a great idea to move, then they maybe able to expand so we will be able to find their great hamburgers more easily.
good move Ca is a sewage storage are now
Trey Gowdy is the smartest and most honest one in that hearing. I hope that James Comey and the rest of his bunch get Hoovered up and spit out before the whole place is gone to hell. The heck with keeping your enemies close. Kick the barstewards OUT!