By on May 16, 2014

Toyota Texas

Toyota’s big move from California to Texas may also bring a big return for Plano, Texas over the next decade, to the tune of $7.2 billion of economic activity.

Bloomberg reports an analysis by Chicago-based Grant Thornton LLP claims the $7.2 billion includes $4.2 billion from payroll taxes, as well as direct and indirect payments, and revenues from sales and property taxes. The analysis was issued on the same day Plano approved a large incentive deal for Toyota, including $6.75 billion in grants and property tax discounts. The state government also approved an incentive package, totaling $40 million.

The report also notes the move and consolidation of Toyota’s operations in the United States to Plano from California, Kentucky and New York, announced last month, is expected to bring as many as 3,650 full-time employees with an average salary of $104,000 by 2018.

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63 Comments on “Analysis: Toyota Could Bring $7.2 Billion To Texas Over Next Decade...”


  • avatar
    alsorl

    Great move for Toyoda to move to Texas. For the tax incentives and marketing. It increases the perception that it’s an American company. Seems like its a win win on all levels.

    • 0 avatar

      It’s a win for low-taxation/ pro-business Republicanism and a LOSS for welfare states like California who raise taxes to pay for welfare for illegals.

      • 0 avatar
        April

        Because anti-capitalism corporate welfare is so much better…

        • 0 avatar

          I never said corporate welfare is good. It’s not.

          But one thing I should argue:

          Illegal-immigrant welfare moms have created FAR FEWER JOBS than Lockheed, GM, Or AIG.

          • 0 avatar
            April

            Sorry to ruin your stereotype but the majority of people on assistance are white.

          • 0 avatar
            Kenmore

            True dat, although their offspring are often a rainbow.

            But it’s manifestly true that rot has no favorites.

          • 0 avatar
            JD23

            Whites also comprise 65% of the population, so that statistic alone is worthless to anyone who understands fractions.

          • 0 avatar
            Kenmore

            If I don’t understand fractions I do understand wholes. And that’s still a whole lot of whites on welfare whose grandparents would’ve shot themselves before accepting a handout. No one’s immune.

          • 0 avatar
            JD23

            My response wasn’t directed towards you, but it is impossible to determine that with WordPress. Anyway, I agree that it is pointlessly divisive and counterproductive to analyze societal problems primarily as a function of race.

          • 0 avatar
            Kenmore

            Agreed and thanks for your reply.

          • 0 avatar
            stuki

            “Illegal-immigrant welfare moms have created FAR FEWER JOBS than Lockheed, GM, Or AIG.”

            Are you sure about that? The only growth sectors around these days, aside from sucking of the Fed’s teet, are federal bureaucracy jobs in welfare agencies and such.

            That aside, “creating jobs” for the specific purpose of destroying as much of the value others have worked to create as possible, isn’t really something to laud. At least “illegal immigrant welfare moms” produce one thing of some value, children. Unlike their native born sisters, who’s main preoccupation over the past few decades is ballyhooing how good and liberated they are at killing theirs.

          • 0 avatar
            alsorl

            Stuki. It sounds like your stuki in a glen beck/hannity bubble.

    • 0 avatar
      billfrombuckhead

      Texas is 51st in citizens with a high school diploma of higher.
      http://www.statemaster.com/graph/edu_hig_sch_dip_or_hig_by_per-high-school-diploma-higher-percentage

      In quality of life issues Texas does poorly in survey after survey even compared to third world nations.

      Texas is America’s “ace in the hole” in the race to the bottom.

      • 0 avatar
        alsorl

        Bill. You pointed out the exact reason why Republican’s worship Texas. Keep them stupid and you have control. You know the home school crowd. Not to say home school is terrible. It can’t be any worse then public school in Florida.

        • 0 avatar
          CJinSD

          I’m surprised you can spell stupid. Texas’ preponderance of uneducated residents is due to the open border. The treason stains you support are the ones trying to turn Texas into another failure-prone blue state by packing it with illegal immigrants that can be reformed into low-information voters like you.

          • 0 avatar
            alsorl

            Those illegal immigrants are not counted in the 51% without a high school diploma. They are illegal therefore they are not counted in that census of the uneducated. If you added in those illegals it would probably be closer to 65% or higher without a high school diploma. The homeschooled bring a different level of stupid for many. Yet some home schooled can fit very well in society without just breading as a form of career.

          • 0 avatar
            CJinSD

            51%? Nice reading comprehension. You should open the link, because you’re confusing a ranking with a percentage. Anchor babies count in every sense. Many of them are born to parents that can’t read and write in Spanish, let alone English. Their prospects for success have a way of dragging down the average. It happens here in California too. Your attacks on the home-schooled make you look like a caricature of the sort of indoctrinated non-thinkers people worry about the public daycare centers producing. Just a thought.

      • 0 avatar
        stuki

        Shows you how much a high school diploma from some indoctrination institution is really worth.

        Many third world nations ain’t so bad, as far as government oppression is concerned. Some are, in fact, at the absolute leading edge. It’s the first world ones that are in a freefall. Texas for sure, California even more so apparently. Aside from the weather, and lane splitting (lack of) laws.

        I’ve consulted at enough companies that have moved from Cali to Texas to feel fairly certain I have a pretty good read on the quality of life of the employees that make the move before or after. The executives, top management, counsel etc. tend to be bummed out. And many of them do return to Cali and a different job, after the novelty of having a 16000 ft^2 ranch versus a merely 4000 ft^2 home in Cali wears off. But for by far most in the below $150-200K pay bracket, the move is the best thing that ever happened to them, in their own words. And not just because of the money, but also because in corporate enclaves in Texas, like Dallas/ft Worth/Plano, the culture to a large extent revolves around the “salaryman.”

        While in coastal Cali, corporate workers are treated like just another breed of cattle, to be experimented on by all manners of social climbing “social engineers” viewing and treating them solely as a source of inputs, to be redistributed, regulated (and then ridiculed) by those whose granddaddy happened to move west early enough to get in on the Cali real estate rocketship back when a tract home closer than 3 hours by car from a city with zoning for productive use was less than $5mill to purchase. And who subsequently used part of his gains to sponsor his kid into some nonsensical social science study at Stanford, where he learned all about manufacturing irrelevant “surveys” “proving” to the naive and indoctrinated how much better progressive Dystopias really are.

      • 0 avatar
        JD23

        I now live in the Dallas suburbs, but spent most of my life in paradises like NJ, Illinois and Vermont. Your depiction of the entire state of Texas as some sort of dystopia compared to the rest of the country is far from accurate. For the middle to upper-middle class in the $100-250k income range, it is possible to live in a desirable area of Texas with well-maintained neighborhoods, relatively low crime, and good schools, without becoming a mortgage slave. It is understandable that the coasts are more appealing to those wealthy enough to enjoy their benefits, but better opportunities may be found elsewhere for much of the middle class.

  • avatar
    xtoyota

    +1 TEXAS

    -1 CALIFORNIA

    Who is the winner know :=)

    • 0 avatar
      highdesertcat

      I was tickled to see this. I don’t live in TX but I like to see this happen for TX.

      I hope more businesses and people leave California. The migration sure has been good for the real-estate business in adjoining states.

      California is bankrupt. Sadly, it is the working taxpayers of California who have to carry this burden, among them several of my family members.

      • 0 avatar
        billfrombuckhead

        California is NOT bankrupt! Why tell tell this untruth? Catapulting the propaganda are we?

        Y’all’s beloved Japan has a far higher debt per capita than California.

        • 0 avatar
          Big Al from Oz

          @billfrombuckhead
          California’s debt is $2.3 trillion. This includes state and local authorities, ie, county/city.

          What isn’t included is the percentage of the US Federal Government debt should be included.

          If California has 40 million people and this means California should accept 12.5% of the Federal Governments debt of $17.5 trillion or another $2.2 trillion.

          So now we are looking at Californians are responsible for approximately $4.5 trillion divided by how many productive workers, ie, not civil servants.

          10 million? That’s a lot of dosh for so few to cough up.

          California might not be broke, but some poor slob who doesn’t work for the government is going to have to pay.

          • 0 avatar
            CJinSD

            I resemble that remark. You can see why some people are so invested in pretending nothing’s wrong though. Government employees are cleaning up. With cradle to grave benefits that turn all their income into discretionary spending, they live better than people making twice as much. They also retire twenty years sooner.

          • 0 avatar
            billfrombuckhead

            Japan owes 99k per person, the highest in the world and it mostly goes to JapanInc, pick on them first. California is at least creative and not bailing out mature industries like flat screen, arguably a more mature industry than the more creative and volatile car business

            The citizens of Texas pay with their lives with worse healthcare and education per capita than Cuba! There’s no free lunch but that cuts both ways. Texas is a vampire stealing jobs but creating few.

          • 0 avatar
            highdesertcat

            billfrombuckhead, a couple of years ago my son-in-law was working for a CA manufacturer as a corporate attorney, when that company decided to move production to Mexico and set up their corporate offices just across the border from the plant, in TX.

            Long story short, my now former son-in-law, is still unemployed living with his mother in LA, and has no incentive to seek employment because the state of CA keeps sending him money to live on.

            Most of the other people that were laid-off when he was are also still unemployed.

            My daughter who was married to this turkey moved from the LA area to El Paso, TX, and is doing very well in her new job at the University as a teacher of teachers.

            The point here is, people, companies, corporations, thrive where the condition and climate nurture productivity and foster growth.

            Given a chance, I hope more people and businesses wise up and leave the state of CA to reach their full potential. Many already have.

  • avatar
    dahammer

    That’s $6.7 Million in grants and property tax discounts. But, a Bullion here, a Billion there, pretty soon we’re talking about serious money.

  • avatar
    fredtal

    We don’t have income tax here so what is this 4.2 bill payroll tax they are talking about?

    • 0 avatar
      dahammer

      From Bloomberg: The figure includes $4.2 billion from payroll, along with direct and indirect spending, and sales and property tax revenue “

      • 0 avatar
        fredtal

        TTAC: “the $7.2 billion includes $4.2 billion from payroll taxes” No matter, not all that 4.2b will go to Texas, so that’s a bit misleading, but I’m sure our politicians will take credit for all it.

    • 0 avatar
      DevilsRotary86

      We don’t have a personal income tax, but when it comes to taxes on businesses it does get a bit murky in Texas. There are corporate taxes. However, I know that as part of the deal to move here we agreed to waive certain taxes on Toyota so I also don’t know what they are talking about exactly.

  • avatar
    Lorenzo

    I hope this analysis isn’t from the same people who calculate the bonanzas cities get from building sports palaces, and the so-called financial boost from hosting the Super Bowl. Those numbers are, um, questionable.

    • 0 avatar
      jim brewer

      I dialed up the Grant Thornton report as best I can tell, its a series of slides that simply assert all these things will happen. they assume the average job will pay $100K.

      It looks like at Texas will pay at least $52K per job. Experience teaches that a lot of the subsidies aren’t well publicized, nor are the clawbacks (if any) if the company doesn’t come through.

  • avatar
    thornmark

    Nissan sales have soared since they left CA. Contrary to predictions.

    The Autoextremist guy thinks both Nissan and Toyota made bad decisions, but he lives in MI.

    Anyway, CA is in LT decline. No competent government would outright lie to its citizens and build not very high-speed rail up the central valley.

    Unless they are controlled by special interests.

    • 0 avatar
      fredtal

      Yea not like our high speed rail or the Trans Texas Corridor proposals. /sarcasim

    • 0 avatar
      Lorenzo

      The politicians in California government ARE the special interests. Their special interest is a social ideology that vilifies all business/money-making. The OTHER special interests want insider business dealings with no regulation or restraints. California was successful only when neither extreme held the upper hand.

      • 0 avatar
        stuki

        Moneymaking is not at all vilified in California, as long as “the right people” make the money. California is just a few steps further down the Progressive drain than most of the country. Hence, who shall earn what, like all else in Progressive Dystopias, should be determined by “policy.” Meaning, in practice, for those of us of above average indoctrination resistance at least, that it should be determined by the ruling caste.

        It’s much more of a pull up the ladder scheme than an outright rejection of making money. Hollywood starlets making money is a-ok, as long as they are dumb enough to believe they are better off being a Cuban when they get cancer than a Texan with a corporate job at Toyota. Heck, even people making millions off of building weapons are just fine, as long as the weapons are reserved for oppressive governments, rather than regular citizens.

  • avatar
    April

    I worry about the legally married same gendered couples who live in California and New York that will need to relocate to the anti equality state of Texas.

    Welcome to the state of second class citizenship.

    :(

    • 0 avatar
      Steve65

      No worries. They’ll probably be fired and their jobs given to people who will work for less anyway.

      • 0 avatar
        JD23

        I’d rather have an additional $10k per year in my pocket by avoiding state income tax. Actually, I’d probably pay an extra $10k to not be married.

        • 0 avatar
          April

          For some people marriage is not about the $$$.

          Lesbian and Gay folk have been fighting for universal (all 50 states) marriage equality for years. Something straights take for granted. As it stands now LGBT married couples taking what amounts to a mandatory transfer to Texas will lose many legal rights and protections. At no fault of their own.

          • 0 avatar
            Big Al from Oz

            @April
            Is LGBT a sandwich or something like land based game fishing?

          • 0 avatar
            Kenmore

            It never ceases to flabbergast me that people who consider themselves Conservative could wage a jihad against *people who work but don’t breed*.

            They are the exact polar opposite of the plague that’s bankrupting us. Crazy christian crackers are killing the Right.

          • 0 avatar
            highdesertcat

            Kenmore, I believe you are reading this wrong.

            No one gives a shit about what consenting adults do in the privacy of their own space.

            What rubs most normal (straight) people the wrong way is this “in-your-face” acclamation that a society MUST accept deviant and unnatural behavior as normal.

            What’s next? Will the government mandate that we accept pedophiles as normal? How about NAMBLA? That’s “love” too. How about a man marrying his ewe or his dog?

            Hey, I’m a straight dude. Been married to the same gal a for 48 years. I love getting kinky with her! Have done so on many occasions. But I have no need to declare myself to the world the way that homosexuals do.

            This legality crap is just crap. Civil unions would do that trick without the drama, and have done so for decades.

            There’s nothing happy about being homosexual. It is their ever-present need for respectability that drives their agenda for recognition as being different.

            They may be hard working, pay their taxes, but that isn’t enough for them. They want to be recognized as being better, and have more rights than everyone else.

            Hence the intrusion on websites, like ttac, that have nothing to do with homosexuality.

          • 0 avatar
            highdesertcat

            kenmore, my comment is awaiting moderation. I think you are reading this all wrong.

          • 0 avatar
            Kenmore

            HDC,

            It won’t be a real long time, as societies are measured, before your notions about gays and mine about race are six feet under along with the rest of us.

            Then the kids will find something else to fight about.

          • 0 avatar
            highdesertcat

            Kenmore, to me these are non-issues. I don’t judge anyone because of the color of their skin, or what their sexual preferences are.

            What I resent is having these issues constantly rubbed in my face! And now on ttac of all places!

            America being the melting pot that it is, there is room for everyone. But let’s not give groups differential treatment because of their agenda.

            My dad was very dark complected being a Portuguese fisherman and was often mistaken on the US East Coast as a half-breed negro (which he was not). My mom was German and very, very fair complected with rich blonde hair.

            When they moved West to CA, the whole skin-color thing became a non-issue.

            And so was homosexuality, a non-issue. In school we knew who they were and we left them alone, and they left us jocks and surfers alone. No big deal.

            In ANY society there are bigots and racists. And there are laws to deal with them when they break the law. Pushing ANY agenda only results in alienating more people and causes resentment against those with the agenda.

            My #2 son and his wife own a couple of beauty shops in the San Diego, CA, area and many of their male stylists are homosexual. It never was an issue for anyone there, and it still isn’t today.

            Still, why would anyone bring up the homosexual agenda on a site like ttac? I’ve noticed intrusions on other sites, money sites, as well.

          • 0 avatar
            Kenmore

            HDC,

            She just brought it up, meekly and only once, because it’s an unarguable consequence of Toyota employees being forced to move to TX.

            And she didn’t identify herself as gay; she could be merely empathetic to gays as I am.

            Because since the 3rd grade I felt *funny* around girls and since the 6th grade all I’ve wanted to do was dive down cleavages.
            I am a roaring hetero.

            But what if someone is wired the other way, and I do believe it is purely an involuntary neuro-hormonal thing, and they have to spend an entire lifetime hiding that kind of passion? No matter how exemplary a citizen they may otherwise be?

          • 0 avatar
            highdesertcat

            Kenmore, traditionally, as well as in societies, birds of a feather have flocked together.

            And I do not believe that anyone is being forced to move anywhere.

            I remember during my days in the military, interracial marriage was never an issue within the military. But assigning interracial couples to certain states within the union was a no-no.

            So we, the military, worked around it. The interracial couples didn’t flaunt it, didn’t demand special acceptance, and the military made assignment concessions if a black man, married to a white European woman, asked not to be assigned to progressive Democrat states of the Southern US of A. I had several black munitions loaders working for me who brought back a white German girl as their wife, and we, the senior NCOs made sure we addressed the ramifications with our subordinates.

            While in the military, just like now, we had a fair number of homosexuals. Never an issue. We judged them solely by the performance of their work, just like anyone else.

            But in this day and age, many military people, as well as civilians, resent the special treatment that homosexuals demand because they view themselves as different, and this causes all sorts of issues, like when a cop makes an arrest and the person declares themselves to be a homosexual. Man, it’s hands off when that happens! Really scary for cops because they can get hit with all sorts of claims of discrimination.

            The list goes on and on, and I can understand the concern that homosexuals have about the discrimination against them, but I can’t help but wonder how we got here, today, with all those homosexuals in our society, before they started demanding special rights and recognition.

            It seems to be an issue now, where it never was in the past. Back then, a homosexual couple drew up a Power of Attorney, recorded it without drama, and the world went on turning.

            When I got married, there wasn’t near the fanfare there is around same-sex marriages these days. This is an agenda.

            And I bet it won’t be an issue for the Toyota move, unless the homosexual community raises the issue and makes it an issue.

    • 0 avatar
      stuki

      Now ain’t that just the greatest problem the world faces as of now….. At least in Texas, they can carry a decent pistol, to defend themselves when all those mean gay bashers come to Gitt’im…

  • avatar
    thelaine

    It’s damn near impossible to destroy a beautiful, wealthy state like California. The left is kind of making a project out of it.

    • 0 avatar
      Steve65

      Right. Because it’s people on “the left” who see things like the water in a river actually making it to the ocean as “wasteful”.

      • 0 avatar
        Lorenzo

        Absolutely! The ocean doesn’t need any more water, especially the unsalted variety that’s ideal for swimming pools and toilets. The Oceans get 3/4 of all the rainfall, let them be satisfied with that. If you think that’s crazy, you’re probably a left brain righty; we lefties are the only ones in our right minds.

    • 0 avatar
      CJinSD

      Parasites thrive on the fattest hosts thelaine. They’ll make California into a sunny Detroit. Give them time.

    • 0 avatar
      highdesertcat

      thelaine, I was born in Huntington Beach, CA. Went back there recently, and it is a dump! It resembles a Mexican Barrio these days where the Community Reinvestment Act has not dared to tread.

      My parental home in Palos Verde where one of my brothers now lives, is worth over a million bucks today, but it is still a house that was built in 1959, when my parents bought it. And the rest of the neighborhood there is just as old, and it shows.

      My #2 son lives in San Diego, in the Clairemont suburb, on Waco. A house built in 1953 and since upgraded and updated to where it is worth at least $350,000 these days. That’s a far cry from the $12,500 his wife’s parents paid for it in 1953.

      My grandson and his wife live in Fallbrook, CA, in the house given to his wife by her parents.

      There’s no way he could afford to live there on GS-9 pay and his wife’s Deputy Sheriff’s pay, if they had to pay the taxes on that house. Her parents still do that although they live in a Motorhome and travel all over America, Canada and Mexico, all year long.

      They all have one thing in common. Stifling taxes, exorbitant cost of living, and the desire to leave bankrupt California for anywhere else but California.

      Quite a number of people have already cashed out of California, and left the state. This has been exceedingly good for the real estate business in adjoining states. Even for us in New Mexico, and in Texas.

      • 0 avatar
        stuki

        The real etate bonanza you are referring to, is at the root of lots of Calis dysfunctionalities. It has to a large extent severed almost all correlation between who works, and who has. randomly buying a shoddily slapped together shack that wouldn’t last a single winter in the Dakotas back in the 50s, have ever since resulted in wealth gains far beyond what most people could amass by saving. So, you end up with a caste of people who’s only goal is to preserve the only way they know how to stay ahead of the other Joneses, which is to try to maximize the advantage of being a “home owner.” tax the heck out of work? Why not? We don’t do that anyway, but instead just live off of home appreciation. Support any amount of money printing for Goldman Sachs? Again, heck yeah, as long as some of it finds it way into lower mortgage rates, so people can bid up the price of my shack…. Create zoning laws to make sure noone else gets to build anything nice enough to compete with my shack in other neighborhoods? heck yeah, it’s called “preserving the communities.” Ban all productive work within 30 miles of me, since factories and stuff are smelly, and working people don’t look posh enough to drive up my home price? Of course! They don’t need to work. Much better if they’re on welfare, so I can feel good about being all liberal and taking care of them….

        And on and on it goes. Unless someone with an above pea sized brain manages to turn the Fed around, the idiocy will probably continue to go on for awhile, but when it crashes, it is incredibly far from where homes are priced today, to where they can be supported by earned income. Like, an 80% drop or something….

        The weather is nice, and the nature is stunning (Huntington Beach ain’t that bad. Go to Gallup….), so there will always be takers. But the complete disconnect between the short term interest of the landed-by-historic-accident and those needed to produce something, does not bode well for Cali’s near and intermediate future.

        • 0 avatar
          highdesertcat

          Stuki, the Californians cashing out and moving out of state have been a boon for real estate in Nevada, Arizona, and even New Mexico and West Texas.

          El Paso, TX, is doing a booming business in building new houses of pretty decent quality and price. No housing slump here. We bought a house in West El Paso for my daughter when she moved here from LA. At $172K, 4600 sq ft, all white brick, three car garage, downright palacial!

          I live in Southcentral New Mexico and we have seen a fair share of people from California move to this area as well. Even sold a couple of homes to them Californians.

          I’m sure there are people who move to CA every single day for all sorts of reasons, but for CA natives like myself, things have changed. Where I remember the Huntington Beach of my youth, I now see the Barrio of Tijuana and Ciudad Juarez in its place and that makes the wide-open spaces of Gallup seem like the Garden of Eden.

          • 0 avatar
            TOTitan

            hdc
            Do you really think El Paso is nice? The climate is horrid and they are out of water. They are facing a bleak future. Regarding Texas being such great place to go, here’s a article from an El Paso newspaper that tells it like it is….no water, and crumbling infrastructure so bad they have torn up some paved roads and turned them into gravel roads due to lack of revenue.

            http://www.elpasotimes.com/ci_23890630/infrastructure-problems-make-texas-less-attractive-business

    • 0 avatar
      stuki

      California will be fine, just like the earth will. The people living there may or may not, but it’s not like the sunshine cares.

  • avatar
    jimbob457

    The attraction of Plano is that is a new upper middle class suburb in the Dallas-Fort Worth metro area. It’s schools are good. It has a low cost of living, housing is cheap, no state income tax, and it is a 3-4 hour plane ride to Los Angeles, Chicago, New York City, Atlanta or Mexico City. London, Tokyo, Sydney and Rio are doable non-stop within one day.

    The bad news is that it is in the middle of the hot and flat. The locals make do fairly well in spite of that. My daughter, who was raised in the suburb next door to Plano, now lives in El Lay and loves it. California has a huge advantage in its climate and access to the ocean and the mountains. You can now buy an In ‘N Out burger in either place. It all depends on what you like.


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