The main reason California businesses leave is the economy, plain and simple. California is too expensive, too regulated, and too taxable, both for companies and the workers they hire. As expected, these companies are moving to states with lower costs, fewer regulations, lower taxes and a better quality of life for their workers, where families pay much less for a home. California is also losing the talented creators of these businesses, creators who can start additional transformative businesses in their lives.
We can't think of a worse statistic for California's future than the inability of companies to invest more in the current state. Texas has become the new California and California is becoming the new Rust Belt, losing businesses and people to states that offer more opportunities and better, more affordable lives. Some of today's small businesses will become tomorrow's blockbusters, and California is losing too many of these potential game changes. Newsom is traveling California to highlight the state's efforts to reopen schools and businesses as it faces the threat of retirement.
Texas ranked best for business and California worst for business out of 50 states in this CEO survey. For the past decade, businesses and individuals have been leaving California for other states, particularly Texas.