Yesterday, Toyota officially disclosed it’s going to move its US operations from California to Texas and a study now shows that its employees could also save money from taxes there.
The Japanese automaker, the world’s top-selling car manufacturer, said it’s going to move its manufacturing, sales and marketing, and corporate operations units headquarters from Torrance, California to North Dallas, Texas, affecting 4,000 jobs in the process.
“With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees,” said Jim Lentz, Toyota’s North American CEO since 2013.
Now, according to the NCPA – the National Center for Policy Analysis, a study conducted says a 30-year old single California resident with an annual income of $75,000 could achieve by moving to Texas a $14,909 save. That would lead to a employee life-time total savings of $1,513,727.Also, a 40-year old married couple owning a house in California and with an income of $150,000 could get a discretionary saving of $2,535 a year.
Besides the 4,000 jobs that Toyota’s move would affect, the company also said in a statement that some 2,300 employees would stay in California, which has a 13.3% tax rate – as opposed to the zero-percent income tax in Texas.