Taxes generally don’t bother entrepreneurs since they rarely pay them. They run businesses that are revenue positive, but not necessarily cash flow positive in the early stages. They do pay taxes when they sell their business and in states like Illinois, currently exits aren’t taxed.The state of California has decided to tax high tech companies and investors that exited, and made the tax retroactive to 2008. Entrepreneurs and investors have beaten a path to Silicon Valley for almost half a century. After Hewlett and Packard made it there home, thousands of companies have been created in the Valley. It’s legendary throughout the world for its pace of innovation.
However, as economics professors from the University of Chicago might tell you, if you want less of something, tax it. Entrepreneurs are now headed out of California.
Here is what long time entrepreneur John Kinzell said,
He says it’s unlikely he or fellow entrepreneurs will ever move back. “It’s just become a very unfriendly state to run a company,” says Kinzell. “Once that sort of bleed starts, it gets hard to reverse it.”
Hyde Park Angels would like to extend them an invitation to join us in Chicago. While the weather isn’t as good year round, Chicago is the best summer city in America according to none other than former NBA star Charles Barkley. There are great schools, great culture, and its a great place to raise a family. If you come right now, you can watch the Blackhawks manhandle the NHL.
Our cost of living is less and you will find your dollar goes a lot farther. Chicago probably eats better than any city in the country. It’s not just the land of pizza and hot dogs, we have great ethnic food too. Despite Illinois pension problems, we still have significantly lower taxes than California. Go east young (wo)man, there is plenty of opportunity here.