High-income taxpayers in most states also will benefit from lower marginal rates. But in California and other states with high tax burdens, the opposite will be true. With a $10,000 limit on local and state tax deductions, wealthy Californians, New Yorkers and residents of the other high-tax states will see their federal tax bills zoom upwards.
In other words, they will feel the full impact of their state and local taxes, which will no longer be subsidized by the federal government and the impact will be the heaviest in California because of its highest-in-the-nation income tax rates.
Nestle’s decision to move hundreds of jobs out of California promises to fuel reflection among Bay Area business and civic leaders on the challenges of operating in California, with its high-priced housing and traffic congestion.
A maker of lithium batteries is promising to provide an economic jolt to the Appalachian region, announcing plans Friday to relocate from California to Kentucky and build a factory employing hundreds of workers in an area reeling from the coal industry's decline. EnerBlu Inc. announced it will invest $372 million and create 875 full-time jobs in eastern Kentucky with the production facility in Pikeville. The company also will move its headquarters from Riverside, California, bringing another $40 million investment and 110 administrative, research-and-development and executive jobs to Lexington, Kentucky's second-largest city.
Ford Motor Co. plans to produce a future electric car in Mexico rather than make it in the U.S., reversing plans announced in January to make its Flat Rock, Mich., assembly plant near Detroit its main electric-vehicle production site.
A New York hedge fund that earlier this year flipped the board of Depomed Inc. and installed a new CEO to boost the company's value said Monday that it will cut 40 percent of its staff and move the drug company's headquarters out of California.
The move is necessary, Newark-based Depomed (NASDAQ: DEPO) said in a Securities and Exchange Commission filing, because it is turning over sales of its pain drug Nucynta to Collegium Pharmaceutical Inc. and won't need as large of a workforce or space.