Several big-name tech companies -- including Oracle (ORCL 3.28%) and Hewlett Packard (HPE 0.97%) -- have recently announced plans to move their headquarters from Silicon Valley to Texas.
Sure, Texas has no state income tax, but that's not the entire appeal. After all, several other states have no state income tax, including some that are closer to California. In this Fool Live video clip from our Dec. 14 Industry Focus show, host Jason Moser and Fool.com contributor Matt Frankel, CFP, discuss what's so appealing about Texas that it is attracting so many big companies.
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Jason Moser: Interesting question here from Amir and I was thinking Arizona as well, but he says, "Why not Nevada? It's right next to California and also no state income tax." Just my two cents, but because Nevada is right next to California, there is probably the concern that you could see some of that California sprawl, so to speak. That same politics that are causing folks to leave, you could see with a state that's adjacent, versus getting out of that area altogether and saying, you know what? We've had it, we're going some place where we know there's a proven track record for thinking about things a little bit differently. That would be my guess. [inaudible] to get to get away from it.
Matthew Frankel: I'd say it's a lack of major cities that already have a tech community. Nevada has Las Vegas, but they're not a tech hub. They don't have a Dallas, or a Houston, or an Austin that already has a big tech presence. In my opinion, that's why a lot of companies are picking Texas. Texas is not the only state without no state income tax, you're right. There's Florida.
Moser: Is Arizona?
Frankel: I don't think Arizona is on the list, but I know Florida is.
Moser: It does have a state income tax. Never mind. I wasn't sure.
Frankel: Is Tennessee on the list? I think Tennessee is on the list.
Moser: I think may be. I think there may by more than Nashville.
Frankel: I could be wrong about that, but I think Tennessee is on the list, there's a few. But Texas has major cities. Dallas and Houston are two of the bigger cities in the country that already have a big tech presence. It's a combination of the no income tax with having a built-in tech hub to build up.
Moser: Austin is a place that's driving a lot of people.
Frankel: It is. A few of them went to Austin.
Moser: Yeah. Austin is a nice place. It's a lovely city.
