Daily Business Report-July 11, 2018
Photo illustration by Pixabay
Despite high taxes, rich people
aren’t fleeing California
By Dan Morain
Far more millionaires move into California than leave, despite the state’s highest-in-the-nation income-tax rate, a new study shows.
Researchers at Stanford University’s Center on Poverty and Inequality and the Franchise Tax Board sought to answer the question: Does California’s top state income-tax rate, now 13.3 percent on people earning $1 million a year or more, drive the wealthy to leave for low-tax states?
Short answer: No, except on the far margin. The researchers reviewed 25 years of California tax returns from all high earners and found that more wealthy people relocate after a divorce.
Republicans regularly cite anecdotes of businesses owners and wealthy people decamping to low-tax states such as Nevada or Texas. But the study shows million-dollar earners moved to California even after voters raised income taxes in 2004 and 2012:
“We often think that the only way for a state to be ‘competitive’ is to be like Texas — a low-tax, low-infrastructure, low-services state. But the reality is that the most competitive places in the U.S., the leading drivers of the economy, and the centers for top talent are New York and California — and they have been for generations, despite higher taxes on top incomes.”
Why this matters: Gavin Newsom, Democratic front-runner to become the next governor, has called for a review of the tax system. There is much to update, and income taxes, a major source of state revenue, would be part of any discussion. The study provides facts for any review.
A message from Lucas Public Affairs: Strategic – Connected – Effective Navigating the crossroads of policy, politics and communications. www.lucaspublicaffairs.com. Dan Morain: dmorain@calmatters.org.
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Report: Resale home prices
persist at record levels
Prices of resale homes continued their record run in June, according to housing statistics compiled through the Multiple Listing Service by the Greater San Diego Association of Realtors.
Single-family home prices were up 2 percent month over month, hitting $655,000. That’s nearly 7 percent higher than a year ago. Condominiums and townhomes (all attached properties) edged up 1 percent in the past month, to $425,000, an increase of 4 percent from June of last year. For the first six months of the year, prices of all previously owned homes are up nearly 8 percent.
The number of sales of single-family homes in June was down 2 percent from May, and significantly lower (17 percent) from June of 2017. Condo and townhome sales in June were down 3 percent month over month, and down 12 percent from June of last year.
In June, resale properties were closing escrow in an average of only 25 days, reflecting the high competition among buyers and lack of properties on the market.
“Our housing market is definitely active this summer,” said SDAR President Steve Fraioli, “and the result is quick sales above asking price. Inventory is likely to be persistently lower, but I think San Diego County will finish the summer on an upswing.”
In June, the ZIP codes in San Diego County with the most single-family home sales were:
92009 (Carlsbad Southeast) with 58
92028 (Fallbrook) with 56
92127 (Rancho Bernardo West) with 49
92078 (San Marcos South) with 51
91910 (Chula Vista N), 92128 (Rancho Bernardo E), and 92129 (Penasquitos), each with 48
The most expensive single-family property sold in San Diego County in June was a 2,464-square-foot home in Del Mar with 50 feet of beachfront, built in 1963, 4 bedrooms, 4 baths, and sale price of $7.5 million.
Click here for a detailed look at the numbers.
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SDEA hosts summer networking
evemt at AleSmith Brewing Co.
San Diego Employers Association hosts their annual Summer Business Networking Event at AleSmith Brewing Company on Thursday, July 19th from 4 pm- 6 pm.
Enjoy meeting and networking with fellow professionals in a casual setting, while enjoying AleSmith’s award-winning beer. Additionally, Kymberli Parker with Duty Free Partners will give a fun and engaging presentation on networking do’s and don’ts. Two beer tickets and food is included with registration. To learn more and to register, visit www.sdeahr.org<http://www.sdeahr.org>.
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General Atomics’ SkyGuardian drone
takes off on trans-Atlantic flight
A Medium-altitude, Long-endurance (MALE) Remotely Piloted Aircraft produced by General Atomics Aeronautical Systems Inc. (GA‑ASI) of San Diego took off from Grand Forks, N.D. on Tuesday in the first-ever trans-Atlantic flight of a MALE RPA. The company-owned MQ-9B SkyGuardian was bound for Royal Air Force (RAF) Fairford in Gloucestershire, UK, where it is scheduled to land at approximately 6:45 p.m. local time today.
“This is a very exciting moment in GA-ASI’s history,” said Linden Blue, CEO. “To demonstrate the long endurance of unmanned aircraft systems, we took on the challenge of flying a MALE RPA across the Atlantic. This effort has taken a lot of coordination and we appreciate the support of the CAA, RIAT organization and the RAF in this endeavor.”
MQ-9B is the new generation of GA-ASI’s multi-mission Predator B product line.
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Seltzer Caplan’s Dan Eaton assumes
presidency of Harvard Law School Association
Dan Eaton, shareholder at Seltzer Caplan McMahon Vitek, has assumed the presidency of the Harvard Law School Association (HLSA), an organization serving some 38,000 Harvard Law School alumni across the globe. After serving one year as president-elect, Eaton began his two-year term as president on July 1, 2018. Eaton received his law degree, cum laude, from Harvard Law School in 1989. He has served on the HLSA Executive Committee and as president of the association’s San Diego chapter.
Eaton, a partner in the firm’s Litigation Department, concentrates his practice on defending and advising clients on a broad range of employment issues. He has written and spoken extensively on employment law, business and legal ethics, and other legal topics throughout much of his career, often appearing in local print and broadcast media as a legal analyst. Since 2007, he has taught classes in ethical decision-making and, since 2009, employment law at San Diego State University’s Fowler College of Business.
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Mobile health devices diagnose hidden
heart condition in at-risk populations
Wearable mobile health devices improved the rate of diagnosis of a dangerous and often hidden heart condition called atrial fibrillation (AFib), according to a first of its kind, home-based clinical study conducted in part by researchers at the Scripps Translational Science Institute (STSI).
By catching AFib, which can increase the risk of stroke fivefold, in people who are at risk but might have gone undiagnosed, the mobile health devices resulted in more people receiving critical preventive therapies, the study found.
“Our study shows an almost threefold improvement in the rate of diagnosis of AFib in the those actively monitored compared to usual care,” says Steven Steinhubl, director of digital medicine at STSI and an associate professor at The Scripps Research Institute. “Timely diagnosis of AFib more effectively can enable the initiation of effective therapies and help reduce strokes and death.”
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UC San Diego biologists discover
process that neutralizes tumors
Researchers from the University of California San Diego have identified an unexpected mechanism that could help determine whether a cancer patient will respond to immunotherapy.
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Invested Traveler offers sales,
marketing training for hotels
Invested Traveler, a division of Invested Advisors Inc., a California-based B2B marketing and communications consulting firm, will host a new webinar training program called “What’s Your Game Plan: Winning with Government Contracts.” The program is designed to enable sales leaders and teams in hotel management grow their business by implementing best practices with government contracts for revenue growth.
Led by Crystal Sargent, president of Invested Traveler, the cost of the webinar is $89/person. Hotel teams can register for the 1.5-hour webinar from July 1-Aug. 31 and Sept. 17-Oct. 31 and will include the hotel’s sales team and facilitator. The webinar will consist of an info sharing portion during which time the sales teams will discuss the specifics of their property’s sales and marketing operation and biggest revenue concerns related to government contracts. The second portion will be comprised of the webinar leader offering tailored solutions that support their unique business goals and constraints.
For more information on the firm, call 858-472-3682.
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Personnel Announcements
Carrier Johnson + Culture promotes key architect and designer
Carrier Johnson + Culture has promoted architect Rick Castillo and project manager Duane Hagewood to leadership positions in the firm.
Rick Castillo, who recently joined the firm as director of architecture in Los Angeles, has been elevated to the role of principal of Carrier Johnson + Culture. He has over 30 years of experience in project design and delivery strategies and scheduling, as well as project management for design and management of senior technical staff. A veteran architect, Castillo is known for his leadership and design skills as well as for his extensive technical knowledge.
Duane Hagewood has been elevated to the position of associate principal. During his 20-plus-year career, Hagewood has been involved in all aspects of building and urban revitalization projects, and has served as both project manager and project architect for major, high-profile projects. Hagewood’s leadership in design projects has included planning, scheduling, and consultant coordination on a wide array of urban design, commercial, multifamily residential, student and affordable housing and mixed-use developments.
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Matt Thoene named CEO of AIS Technology Services
AIS Technology Services announced the appointment of Matt Thoene, long-time San Diego resident, as its new CEO, effective immediately. Thoene, previously senior vice president, global operations with the Uptime Institute, is an industry veteran with decades of experience in the data center and managed services industries.
Thoene brings a breadth and depth of experience to AIS, including three years as managing director of KIO Networks’ U.S. operation. “AIS is uniquely situated to provide high-quality services to a number of sectors including health care, biotech, medical device and financial services,” said Thoene. “The recent investments in our data centers, combined with our geographic diversity, expansive network infrastructure and cloud architecture, puts AIS in a strong position to grow and better serve our clients’ needs.”
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Matt Baroni joins Pacific Building Group
Pacific Building Group has hired Matt Baroni, a long-time San Diegan with nearly 20 years of experience in the construction industry, as director of field operations. Named 2015 and 2017 San Diego County Superintendent of the Year by Associated Subcontractors Alliance, Baroni is helping manage Pacific Building Group’s projects, including the Portside Pier and NuVasive headquarters. He’s also working to shape the next generation of construction professionals.
Baroni’s core responsibilities include ensuring projects are on schedule and on budget; maintaining a safe work environment; mentoring and supporting the team; and aligning team members with the jobs best suited to their skill sets. Baroni held previous positions at Level 10 Construction, Manchester Construction Company and Turner Construction.
“From hitting project milestones to cultivating an enriching work environment, I take great pride in every part of my job,” says Baroni. “Working at Pacific Building Group is a dream, and my hope is to exceed client expectations and support the next generation at this great company.”
