Home » [Famous Column]The real reason why Musk left California | Tesla | Electric car giant | Elon Musk

[Famous Column]The real reason why Musk left California | Tesla | Electric car giant | Elon Musk

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[Epoch Times December 06, 2021](English Epoch Times columnist John Seiler/Compiled by Jiang Linda) American electric car giant Tesla Inc. CEO Elon Musk brings the factory After leaving California, you will save a lot of money.

According to an article published by Bloomberg on November 29, entitled “Elon Musk’s exit from California can save him $2 billion in taxes”, the subtitle is “This billionaire sold many houses to escape the high tax rate state.” The “Key Step” article mentioned that moving out of California will “enable the Tesla co-founder to announce that he is no longer a resident of the nation’s wealthiest income tax state.” After all, in California, he needs to pay the highest tax rate of 13.3%.

This is indeed a lot of money to be saved. But when I write this manuscript, Musk is worth 282 billion U.S. dollars, so the money saved is less than 1% of his net worth. This is not a good reason for him to leave the mild and pleasant Silicon Valley and move to hot and humid Austin.

Although Musk did not announce, the real reason for his departure is probably that the top engineering talents his company needs have moved from California to Texas. For example, for an engineer with an annual salary of $1 million, in addition to climate factors, moving from California to states with low tax rates such as Texas, Florida, or Tennessee will double or triple his personal quality of life. It is no wonder that they have moved from Golden State to Lone Star State and some other states one after another.

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This is why other high-tech companies are also moving out of California. Entrepreneur Magazine reported in July: “As big companies such as Oracle, Palantir, and Hewlett Packard Enterprise leave Silicon Valley forever, California’s status as a US technology hub may be questioned. The transition to remote work A lot of new possibilities are created; technology professionals are taking advantage of the new standards of flexible work and relocating to more affordable areas.”

The tech giant said that Oracle moved to Austin because “a large team of people who are growing and willing to work remotely means a favorable environment for Oracle.”

Of course there are also educational reasons. According to a survey conducted by the US News World Report in April 2021, the graduation rate of high school students in the United States in 2019 was 88%, compared with 93% in Texas, but only 85% in California.

Texas also has 290 high schools with a 100% graduation rate, compared to 63 in California. And the population of Texas is only three-quarters of California’s.

According to the latest U.S. National Education Report Card (Nation’s Report Card), the National Assessment of Educational Progress (NAEP), the average score of fourth-grade students in mathematics is 240 points (out of 500 points). The state with the highest score is Minnesota, which has been leading all year round, with 248 points; Texas with 244 points, “significantly higher” than the national average; California with 235 points, “significantly lower” than the national average.

These children with excellent mathematics will grow up to become engineers, mathematicians, scientists, and accountants.

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But California public schools are now wasting precious time on new, one-semester ethnic studies courses. In addition to the controversial nature of such courses as reported by The Epoch Times, this time should be used to study mathematics, science, language and other subjects that will play a vital role in future competition.

On the other hand, parents tend to encourage their children to pursue similar occupations. Steve Wozniak is the genius engineer behind the first and second generation of Apple computers. His father was an engineer on top-secret projects of the Ministry of Defense and a true rocket scientist; and Bill Gates ( Although the father of Bill Gates was a wealthy lawyer in Seattle, he encouraged and cultivated his son’s interest in computers and allowed him to attend a private school that had the first batch of computers for students.

Therefore, the move of engineers to Texas means that more children of engineers will grow up there and are more likely to stay and work there.

In the U.S. News and World Report’s 2022 public university rankings, the University of Texas is still lagging behind, ranking 38th, lagging behind the Ivy League schools in the first place, the California Institute of Technology in the ninth place, and the University of California, Los Angeles, 20th, University of California, Berkeley, 22nd, Southern California, 27th, University of California, Santa Barbara, 28th, University of California, San Diego, 34th, University of California, Irvine, 36th And the University of California, Davis (ranked 38, tied with the University of Texas).

But this is not as bad as it seems. After all, where students go to high school usually depends on where their parents live, and top talents can go to university anywhere and often get generous scholarships. After graduation, they can go to work anywhere.

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If all these are added together, the tax burden becomes less important than other anti-competitive factors living in California. Of course not all are pessimistic. However, the operation of enterprises focuses on marginal interests. They are always in competition and need the best talents to maintain their leading position. Musk and other technology executives just moved southwest to Texas following their talents.

The original “The Real Reason Elon Musk Is Leaving California” was published in The Epoch Times.

About the author: The author John Seiler (John Seiler) is a senior critic writer in California. He has written editorials for The Orange County Register for nearly 30 years. He is also a U.S. Army veteran and served as press secretary for California Senator John Moorlach. His blog address is johnseiler.substack.com.

The views expressed in this article are those of the author and do not necessarily reflect the views of The Epoch Times. ◇

Editor in charge: Fang Ping

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