Tech Giants Are Quietly Leaving Silicon Valley [Forbes]
Alphabet Inc. - Class C Capital Stock (GOOG)
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Source: Forbes
Getty Earlier this year, a bus full of top venture capitalists pulled into Flint, Michigan. Flint doesn’t come to mind when you think about “tech.” But with cheap real estate and reviving downtowns, Flint and other Rust Belt cities attracted the VCs. They looked for the next home of innovation beyond California. In fact, tech royalty is no longer just looking. The likes of Google, Tesla and Amazon have already moved part of their business elsewhere. All of this shows that Silicon Valley may be losing its status as the world’s technology hub. I spoke with my contact Eric on the ground in Silicon Valley. This article is a summary of our conversation about tech firms leaving the area. Let’s begin with reasons behind this migration. Taxes and Real Estate California has an 8.84% corporate tax rate, which is one of the highest in the U.S. Most other high tax states are in the Northeast and Upper Midwest. For comparison, Colorado’s tax rate is 4.
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