Digital Brands Group just packed up and relocated from California to Texas. CEO Hil Davis didn't sugarcoat a single thing about why, either. He flat out told Fox News that operating a company in the Golden State is miserable. His exact words? The experience "sucks."
The apparel and e-commerce outfit shuttered its Vernon, California headquarters and signed a lease on 70,000 square feet of space in Round Rock, Texas, according to reports. Davis laid out a laundry list of grievances that pushed him over the edge. Sky-high living costs. Brutal commute times for workers. Escalating operational expenses. And a lawsuit-happy environment that bleeds companies dry just trying to stay compliant.
Here's the thing. None of those problems fell from the sky. Every single one traces back to deliberate policy decisions made by state leadership over the years. And the exodus is not some isolated tantrum by one frustrated CEO.
Los Angeles County alone has hemorrhaged close to $1.9 billion in reported income as tax filers bolted for friendlier territory. The corporate departure list reads like a who's who of American industry. Tesla. Oracle. Hewlett Packard Enterprise. Charles Schwab. Chevron. SpaceX. Palantir. McKesson. Dropbox. X. Amgen. In-N-Out Burger. Snowflake. The parade of exits stretches on and on, with billions in revenue and thousands of positions landing in Texas, Florida, and other states that apparently grasped basic economic principles.
And the bleeding could accelerate dramatically. California voters will face a proposed billionaire tax on the November ballot. It would slap a five percent wealth penalty on anyone worth more than a billion dollars. The state is calling it a one-time measure, but wealthy residents aren't sticking around to find out. Many have already relocated before the thing has even passed.
Now here's where this story gets truly spicy. Governor Gavin Newsom is reportedly gearing up for a 2028 presidential bid. His recent trip to Michigan lasted 65 hours and generated what his team bragged was a million social media views. Meanwhile, only 17 actual humans showed up to his barbecue event. Let that sink in.
He also orchestrated a carefully controlled viewing of his tax returns in a room where cameras and phones were banned. This while reportedly facing an active federal criminal investigation.
The man apparently wants to campaign on his California track record. That same track record features a stampede of corporations fleeing the state, nearly two billion dollars vanishing from one county, the nation's highest income tax rates, the most punishing housing costs, and a business climate that CEOs openly describe in unprintable terms.
Davis summed up what countless executives are thinking but rarely say out loud. The question now is whether voters outside California are paying attention to this warning before it becomes a national platform.
Read more conservative news commentary at: USA Journal News
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