The race for corporate America's home base just flipped, with Texas now hosting more Fortune 500 headquarters than California, 57 to 56. It's a lead of exactly one company, and the interesting part is what California is doing that could widen the gap.
Two years ago California was on top, and now the revenue math has flipped too. Texas-based companies brought in $2.8 trillion last year, edging out California's $2.7 trillion.
The names that moved tell the story, with ExxonMobil, Chevron, Samsung's U.S. arm, SpaceX, and X all shifting either their headquarters or their legal home to Texas, most of them straight from California.
The people followed the companies. Uber co-founder Travis Kalanick just announced a move to Austin, joining Elon Musk, Mark Cuban, and other big names who relocated in recent years.
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California isn't standing still, and one proposal has business owners nervous. A measure headed to the November ballot would put a one-time 5% tax on residents worth more than $1 billion.
It targets roughly 200 people, so someone worth $20 billion would owe $1 billion, payable over five years.
Backers gathered more than 1.55 million signatures, nearly double what they needed, and frame the tax as a response to federal health cuts. Opponents warn it could cost the state an estimated 108,000 high-paying jobs over 20 years, according to Fox Business.
A one-company lead can flip back next year. A tax that pushes billionaires to pack up is harder to reverse.
November will tell us which way the next move goes.
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