Texas gov. tries to woo business away from Calif.


Perry is promising better business conditions in Texas. And because of recent California tax hikes, some experts think he might find a few takers.

In a portion of the radio ad that's airing in California, the Texas governor says, "Building a business is tough, but I hear building a business in California is next to impossible. And I have a message California businesses -- come check out Texas." The ad is aimed at attracting California's billion dollar companies to Texas.

This is not the governor's first visit to the Golden State. He touts his state where there is no state income tax, labor costs are cheaper, and business regulations more lax.

Golden Gate University marketing and consumer psychologist professor Kit Yarrow says the governor has a point, and might be successful in poaching some businesses, "There's an opportunity with our big increase in taxes and cutbacks on services," she said. "I think the time is now."

Governor Jerry Brown isn't taking Governor Perry's trip serious, "Those Texans who move here, they don't wanna go back," he said. "Who would wanna spend their summers in 110 degree heat inside some kind of fossil fuel air conditioner?"

Still, Bay Area companies like Facebook and eBay have recently set up campuses in Texas. And according to Forbes, San Ramon-based Chevron is moving 800 jobs to Houston.

"I think every company is trying to weigh the costs, which are huge in California, against the benefits, which are also huge," Yarrow said.

And the state still attracts its share of businesses. Web hosting company GoDaddy.com is set to open new offices Monday in Sunnyvale.

"The talent pool here is rich and diverse and the amount of capital is tremendous," VP Steven Aldrich said. "I've been the founder of a few startups, and that capital has come from Silicon Valley. You need to be here to access that."

Governor Perry will be talking to high tech, bio tech and film industry leaders during his three day trip. His visit starts in San Francisco, then on to Silicon Valley and Los Angeles.

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