In my most recent three posts, I found 257 Corporations HQed in California, with Ongoing, Core Pretax Income or Loss of at least $40 mil in any of the first three fiscal years of the Obama Administration or in either 2009, 2010 or 2011, and which also had their common stock trading on both Jan 16, 2009 just before President Obama took office and also in late May 2013 or early June 2013.
I think it would be helpful to stratify these 257 California Corps by location. 137 of them are HQed in the San Francisco Bay and Silicon Valley areas. The other 120 are HQed in the rest of the huge State of California, with most of them in Southern California.
The 120 of them in the rest of California, mostly in Southern California, had their average common stock prices increase by a very robust 135% in the roughly four and a half years since President Obama took office. These California residents have to be very pleased with how well their Corporations have performed since President Obama took office.
So, what about the 137 located in the San Francisco Bay and Silicon Valley areas? After all, this area is very special as indicated by both the very strong work ethic and incredibly high level of creativity here. And this area is also home to many Corporations which dominate the California earnings landscape including Apple, Chevron, Wells Fargo, Google, Intel, Oracle, Cisco Systems and Hewlett Packard.
Well, believe it or not, these 137 San Francisco Bay and Silicon Valley area California Corps had their average common stock prices increase by an off-the-charts 191% in the roughly four and a half years since President Obama took office.
This massive 191% increase predominately occurred in the first two years of the Obama Administration, when both the US Senate and the US House were under Democratic control.
The combination of President Obama and California Governor Brown creates a very favorable economic environment for all of California, but particularly for the key San Francisco Bay and Silicon Valley areas.
If all of the following were to occur.....Janet Yellen becoming the new US Fed Chairperson in Jan 2014, the US Senate remaining in Democratic Control and with Mitch McConnell defeated in Nov 2014, and with the US House switching to Democratic Control also in Nov 2014.....this 191% average stock price increase for these 137 San Francisco Bay and Silicon Valley area California Corps will increase to above 500% over Obama's entire eight-year Presidential run. I am pretty certain of it.
What one thing could the US Government do right now to help this along? Get the IRS Feds out of the Research and Experimentation Tax Credit audit arena. How? By substantially simplifying the R&E Tax Credit computation immediately. How can the R&E Tax Credit create much in the way of US jobs if in order for companies to earn it, they get their R&E Tax Credit audited to death by overaggressive, mostly untrained, and even some dishonest, IRS auditors?
