Technology companies and their employees are leaving Silicon Valley life behind to move to cities like Austin, Texas and Miami where tax regulations are lower and life is more family friendly.
San Francisco, the epicenter of Big Tech, is experiencing an exodus of entrepreneurs and employees due in part to high taxes, cost of living, and a safe family environment.
Austin, Texas and Miami, Florida, two cities that are certainly more conservative than San Francisco, are the two most frequently chosen destinations.
According to an NBC report, Miami Mayor Francis Suarez has received numerous inquiries from top executives in recent weeks, from Elon Musk, CEO of Tesla to Jack Dorsey CEO of Twitter. He has also met with former Google CEO Eric Schmidt and Palantir Chairman Peter Thiel.
Suarez said, “There is absolutely no doubt that a big part of the reason why they are moving is that they feel that there is an inhospitable environment for regulation and taxation.”
According to Sahin Boydas, an entrepreneur who left Silicon Valley, a three-bedroom house in San Francisco costs the same as a five-bedroom house with a huge yard in Austin.
It’s not just the cost of rent that is lower: the water bill is lower; the waste collection bill is lower; the cost of a family dinner at a restaurant has dropped significantly; and there is also no income tax, as in California.
The tipping point was the pandemic. When these large companies adopted the “work from home” methodology (which doesn’t appear to be going away), employees realized that all the cons that the city had and were overlooked now made no sense, and living in a more spacious home, in a more open society, became a priority.
In addition, the attitudes of Democratic and Republican government officials also differ tremendously.
While Democrats in San Francisco have filled their streets with homeless and illegal aliens with their sanctuary city policy and achieved this by raising taxes on businesses, the Republican approach has been to lower taxes (President Trump’s legacy), adopt a noninvasive form of government, and a rule of law.
According to the Baltimore Sun, Bear Kittay, the co-founder of Good Money, an online banking platform, who is building a property for people moving out of San Francisco said, “A lot of people are choosing to go to places where there’s opportunity, and maybe it’s a place that is more conservative and there can be an integration of dialogue.”
Silicon Valley, the birthplace and home of Facebook, Twitter, and Google, is arguably the antithesis of free speech and the enemy of conservatives.