They say everything is bigger in Texas, and apparently that includes the Toyota's effect on the economy. The giant Japanese automaker's new headquarters in Plano, TX, will add an estimated $7.2 billion to the state over the next 10 years, according to a new study commissioned by the city and cited by Bloomberg.

The benefits appear to be an absolute steal compared to the direct incentives that Plano and the state are giving Toyota. The report finds that by the time the automaker's campus is complete in 2018, it could have 3,650 full-time workers there at an average salary of $104,000. The city has prepared $6.75 million in grants, plus property tax discounts, according to Bloomberg. In addition to that, the state is offering the business $40 million in incentives from its Texas Enterprise Fund. This is still a fraction of what Toyota is estimated to bring in.

Toyota announced in April that it would move its US operations to Plano after being headquartered in California since 1957. The move affects thousands of employees from the sales and engineering divisions. The first workers will arrive there this fall, but Toyota will eventually have a whole campus in Plano by late 2017. The move is expected to save it huge amounts in taxation and offer employees a lower cost of living. Toyota North America CEO Jim Lentz also says that the Texas location puts the headquarters closer to more of the business' factories in the south. Texas certainly appears to be showing it some southern hospitality.


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  • 58 Comments
      mike.mor
      • 7 Months Ago
      No one outside of California has any idea how unfriendly this state is towards businesses. I own a small construction here in Cali for the last 17 years and it seams to get worst by the day. 1. Crazy expensive taxes, fees, cost of fuel, and high insurance rates. 2. This place is stupidly over regulated, new codes and rules are coming out faster than we can follow them. 3. Constantly contested freeways and most roads greatly hurting productivity and adding up to the overhead. 4. High rates for sales tax , state tax, city business tax. 5. Cost of homes make it nearly impossible for first time buyers to own any property and " get a head " financially. 6. With everything getting more and more over regulated, it's impossible to enjoy time off work as well, all lakes, parks, beaches and deserts are unbelievably restricted. 7. Insane ( and insulting ) gun regulations. 8. Insane air pollution regulations and restrictions. My list can go on and on and at this point I don't know if I should be happy or sad to say that after 22 years here, we are in a process of relocating out of California. I'm sure that given the size of my business ( ½ a million a year sales ) it won't effect the local economy whatsoever, but it'll be yet another one less business to do his share with contributing to this local economy. The " golden state " slogan should be replace with " what the hell are you doing here " state, and that's a shame because it used to be a great place not that many years ago. If you an ( CA ) outsider and don't agree with any if the above statements than why don't you come here and pay $4.50 a gallon ( regular grade ) smog your diesel truck and ideal equipment, pay $65 to $123 for parking tickets, 9.75% sales tax, more than $500 for yearly registration, $52 yearly registration for off road bikes and quads, boat inspection at all lakes, green inspection for all construction projects, and so on. Enjoy ...
      ri2010ri
      • 7 Months Ago
      California is stupid for losing Toyota to Texas!!!!
      Lunch
      • 7 Months Ago
      CA is great at chasing away business, but the so called "leaders" who run CA will never get it. Hey CA, see ya' Hola' Tejas.
      D210
      • 7 Months Ago
      We fought them in ww2 and beat them. So I thought. Texas is committing treason by letting them in their state
        withymybacktothesea
        • 7 Months Ago
        @D210
        I drive a VW - you must think that means I'm Hitler incarnate. Go home hillbilly - you're drunk.
        Mike
        • 7 Months Ago
        @D210
        We also fought the Chinese in the Korean War. I guess we all have to turn ourselves in for shopping at Walmart.
        churchmotor
        • 7 Months Ago
        @D210
        The South fought Detroit in the Civil War. So I thought. The South is committing treason by letting Detroit autos in their state. See how that works D1701
      icemilkcoffee
      • 7 Months Ago
      Can we start calling Texas 'Government Motors' yet? Here they are, taking a $40million welfare check from the state of Texas. Or maybe we should call them Welfare-queen motors?
      Jason Krumvieda
      • 7 Months Ago
      California chose to take a big chunk of nothing while Texas decided to take a small sliver of something. It is a no brainer on who is going to win when it comes to attracting businesses.
        Carlos Cruz
        • 7 Months Ago
        @Jason Krumvieda
        When you don't really spend any money taking care of the least fortunate in your state you don't need much in revenue to run it. I'm sure if you were to get cancer while in Texas instead of health insurance they'd refer you to the Glock included in the welcome bag along with a coupon for 20% off* membership dues for the NRA. *Valid for first time members only.
          Larry Litmanen
          • 7 Months Ago
          @Carlos Cruz
          You done parroting 0blamo or is there more?
          Rex Monaco
          • 7 Months Ago
          @Carlos Cruz
          Liberals spend money making sure they stay in power. They keep 70 cents of every dollar they streal from us. Skidrow is 50 blocks and growing. What have the Democrats who have long controlled California and Los Angeles done to help them get jobs? Liberals like to scream about income inequality, while they retreat to their gated communities in Malibu, paid for by their 20million per picture salaries.
      tegdesign
      • 7 Months Ago
      Turns out a business friendly environment creates tax revenue and lots of good jobs for the local economy. Surprise!
        icemilkcoffee
        • 7 Months Ago
        @tegdesign
        Note that the $7billion cited is 'economic activities', not tax revenues. Texas gave away $100million in tax credits to Toyota, in addition to the $40 mill welfare check. So don't expect to see any tax revenues any time soon.
          David
          • 7 Months Ago
          @icemilkcoffee
          Oh No! Texas cares more about economic revenue that circulates to their own citizens rather than overall tax revenue for the state! Sounds good to me.
          Rex Monaco
          • 7 Months Ago
          @icemilkcoffee
          If I buy gas that's economic activities. When I buy that gas, there is a tax collected. That is tax revenue. So easy that was?
      Al Terego
      • 7 Months Ago
      Oh but don't buy Toyota, they're not American and all the money goes back to Japan...blahblahblah Can't believe some of the bigoted, stupid sh*t I read here sometimes.
      Db
      • 7 Months Ago
      To all the California politicians, bureaucrats and other "useful idiots" who drove Toyota to Texas... you absolute idiots!!!!!
        J
        • 7 Months Ago
        @Db
        > To all the California politicians, bureaucrats and other "useful idiots" who drove Toyota to Texas... you absolute idiots!!!!! Shhh! Those individuals (such as the knightrider) might be compelled to move to Texas - thus spearheading a liberal migration....
      lad
      • 7 Months Ago
      Tell the Californians moving to Texas to make sure they have hail insurance and not to get caught outside when the sky turns green. Oh yes, that smell is natural gas from the fracking.
      bootsnchaps60
      • 7 Months Ago
      Great, the Nation of Texas will need a good revenue source.
        icemilkcoffee
        • 7 Months Ago
        @bootsnchaps60
        Since they already gave Toyota a $100 million tax holiday, don't expect any tax revenue any time soon.
          Jason Krumvieda
          • 7 Months Ago
          @icemilkcoffee
          But the 3650 people with $100k salaries will pay no taxes, or buy homes that have no property taxes that goes to local schools. They won't buy any groceries that goes to sales taxes or gas for their cars and that tax goes towards the roads. I don't think you know how this tax thing works icemilkcoffee
          icemilkcoffee
          • 7 Months Ago
          @icemilkcoffee
          Jason: TX has no income tax. They'll pay property tax, but most likely most of the employees will be local Texans, because a lot of California based employees will not move with the company. So the net gain in property tax will be minimal.
          jtav2002
          • 7 Months Ago
          @icemilkcoffee
          You have to realize Jason most people on AB don't even really properly grasp the auto industry, let alone taxes and economics.
      bK
      • 7 Months Ago
      But wait, doesn't all the money go back to Japan!?
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