The race for corporate America's home base just flipped, with Texas now hosting more Fortune 500 headquarters than California, 57 to 56. It's a lead of exactly one company, and the interesting part is what California is doing that could widen the gap.
A Two-Year Swing
Two years ago California was on top, and now the revenue math has flipped too. Texas-based companies brought in $2.8 trillion last year, edging out California's $2.7 trillion.
The names that moved tell the story, with ExxonMobil, Chevron, Samsung's U.S. arm, SpaceX, and X all shifting either their headquarters or their legal home to Texas, most of them straight from California.
The people followed the companies. Uber co-founder Travis Kalanick just announced a move to Austin, joining Elon Musk, Mark Cuban, and other big names who relocated in recent years.
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The Tax That Could Widen The Gap
California isn't standing still, and one proposal has business owners nervous. A measure headed to the November ballot would put a one-time 5% tax on residents worth more than $1 billion.
It targets roughly 200 people, so someone worth $20 billion would owe $1 billion, payable over five years.
Backers gathered more than 1.55 million signatures, nearly double what they needed, and frame the tax as a response to federal health cuts. Opponents warn it could cost the state an estimated 108,000 high-paying jobs over 20 years, according to Fox Business.
Worth Noting
A one-company lead can flip back next year. A tax that pushes billionaires to pack up is harder to reverse.
November will tell us which way the next move goes.
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