Why Silicon Valley is Moving to Texas

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You read here yesterday that tech billionaire Elon Musk has moved to Texas, but he’s not the only one making the break from California for the Lone Star State. Nearly 700,000 Californians have moved to Texas over the last ten years. Now, the company that laid the cornerstones of Silicon Valley’s tech dominance, Hewlett Packard, is moving there too. Fox News reports:

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The San Jose, California-based tech company disclosed the move in an SEC filing.

“HPE has made the decision to relocate its headquarters from San Jose, California, to Houston, Texas. HPE’s largest U.S. employment hub, Houston is an attractive market to recruit and retain future diverse talent, and is where the company is currently constructing a state-of-the-art new campus. The Bay Area will continue to be a strategic hub for HPE innovation, and the company will consolidate a number of sites in the Bay Area to its San Jose campus. No layoffs are associated with this move.”

Texas Gov. Greg Abbott celebrated the move, noting it could lead to more state jobs, and said an early 2022 opening is possible.

We are excited that Hewlett Packard Enterprise has chosen to call Texas home, and I thank them for expanding their investment in the Lone Star State by relocating their headquarters to the Houston region,” Abbott wrote in a statement. “Hewlett Packard Enterprise joins more than 50 Fortune 500 companies headquartered in the Lone Star State, including 22 in the Houston area alone.”

Abbott has openly been recruiting corporations to move to Texas.

Governor Abbott has plenty of tools available to attract companies from California and other high tax, high regulation states to Texas. The high income earning employees of Silicon Valley are hammered with a top individual income tax rate of 13.3% in California, but pay 0% state income tax in Texas.

Is it any wonder Californians are fleeing to Texas in droves?

Action Line: Take a look at your business. Are you located in the best place you can find? Advancements in technology and logistics have made it easier to work from anywhere in the country. If you’re not doing well, maybe you need to look for a better America.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.