Perry Tells Calif. Businesses: Come Check Out Texas!

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The governors of California and Texas, two of the largest states in the country, are competing for business.

Texas Gov. Rick Perry took to the airwaves this week urging California business owners to flee high taxes for the Lone Star State.

"Building a business is tough, but I hear building a business in California is next to impossible," Perry said. "I have a message for California businesses: Come check out Texas."

California Gov. Jerry Brown dismissed the radio ads in colorful language, sending the message that he doesn't believe anyone will actually leave.

But California could actually be on the losing end of this battle. Critics say Perry's ads highlight issues that have dragged down businesses in the Golden State for years.

"The taxes are high. The regulations are onerous. There's a lot of things keeping them from being able to innovate, grow their business," former Arnold Schwarzenegger aide Aaron McLear said.

It's not just a problem for businesses. It's also getting awfully expensive to be a millionaire there.

Phil Mickelson, the championship golfer, recently suggested he might leave California for a state with no personal income tax.

Mickelson often collects million dollar purses from his tournaments, and California's new 13.3 percent state income tax, combined with high federal taxes, have been hitting him hard.

For example, on Sunday Mickelson won more than $1 million in a Phoenix tournament. Forty percent automatically went to the federal government, 13.3 percent to the state of California, and five percent to the state of Arizona. That means that 58.3 percent of the purse went to taxes.

Perry was quick to offer Mickelson some Texas hospitality.

"Hey Phil, Texas is home to liberty and low taxes. We would love to have you as well," the governor tweeted.

Perry plans to travel to California next week to meet with business owners personally.

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