Another reason for these kind of moves is to shed workforce without going through layoffs.
For legal purposes, this sort of move is treated as a layoff by nearly every state, so that's clearly not a driver behind the move.
It's usually one of 2 things: tax incentives that make the move cost-effective over a 3-7 year window, or the CEO has moved to the new state and is dragging HQ along with him.The second is actually more common than the first. Tax incentives are fairly stringent and most companies fail to satisfy the requirements to receive the full incentives offered, so moving states for purely tax reasons is uncommon these days. Additionally, most of the so-called "business friendly" states are actually more burdensome and onerous than so-called "business hostile" states. Alabama, for example, has 7 different taxes on businesses that usually end up costing businesses more than the 1 or 2 taxes that the same business would face in California. Florida and Texas will openly attempt to inflict economic damage on companies with different ideologies from their governors.
In this case, the Texas Governor is remarkably anti-business (unless it's oil), and Oracle is probably moving to a state less hostile to business.
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Another reason for these kind of moves is to shed workforce without going through layoffs.
For legal purposes, this sort of move is treated as a layoff by nearly every state, so that's clearly not a driver behind the move.
It's usually one of 2 things: tax incentives that make the move cost-effective over a 3-7 year window, or the CEO has moved to the new state and is dragging HQ along with him.The second is actually more common than the first. Tax incentives are fairly stringent and most companies fail to satisfy the requirements to receive the full incentives offered, so moving states for purely tax reasons is uncommon these days. Additionally, most of the so-called "business friendly" states are actually more burdensome and onerous than so-called "business hostile" states. Alabama, for example, has 7 different taxes on businesses that usually end up costing businesses more than the 1 or 2 taxes that the same business would face in California. Florida and Texas will openly attempt to inflict economic damage on companies with different ideologies from their governors.
In this case, the Texas Governor is remarkably anti-business (unless it's oil), and Oracle is probably moving to a state less hostile to business.