California Business Climate:
Nevada Touts its Low Tax Burden in Pitch to California Businesses

The Nevada Development Authority has launched an advertising campaign directed at California businesses, urging them to move to the Silver State, where there is "no corporate income tax, no personal income tax, no inventory tax, lower workers' comp" and a "pro-business attitude."

The Nevada agency said it will post ads in major daily newspapers and business publications across California during the next five months. The ads feature cartoons, such as the one shown on the right, playing off the bear from California's state flag.

Denise Davis, a spokeswoman for the California Chamber of Commerce, said: "Employers face challenges in California, but it's a very attractive place to do business. We have a very tremendous talent pool to pull from. We work hard to stave off challenges to business in this state so companies can remain competitive."

The Las Vegas Review-Journal notes that Nevada's attempt to woo businesses is not a new occurrence. The paper reports: "The ads are the latest salvo in a years-long battle for businesses from California. Prior campaigns, with their cheeky tones, have received attention from news media including Time magazine, the Los Angeles Times and The Washington Post, and in 2004, California Gov. Arnold Schwarzenegger came to town with a moving truck to issue some witty rejoinders to the authority's efforts in person." (Sources: Nevada Development Authority press release, February 19; Las Vegas Review-Journal, February 20.)

Cal-Taxletter February 22, 2008

© 2008 California Taxpayers' Association. All Rights Reserved.