Toyota’s decision this week to leave Torrance, California, for the pro-businessenvirons of Plano, Texas, sent shockwaves through the Southern California community where Toyota employs more than five percent of the workforce. According to MSN Money, the move brings to mind Nissan’s decision eight years ago to move 1,300 jobs to the no-income tax state of Tennessee. A former Nissan executive recalled how the move equated to the company’s employees “getting a 20-percent raise.”
According to the 2013 City of Torrance’s Comprehensive Annual Report, the city stands to lose more than $473 million in property taxes. Plus, just over a year ago, Moody’s downgraded Torrance’s credit rating, citing a weakened general fund and increasing public expenditures.