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Former Intuit CEO on WV launching nation’s premiere remote-work program

West Virginia is launching the nation’s premiere remote-work program, aimed at recruiting outdoor-enthusiast professionals. Intuit Chairman of Intuit’s Board of Directors Brad D. Smith joins Yahoo Finance Live to discuss.

Video transcript

- West Virginia wants you to work remotely from inside the confines of the outdoor recreation friendly state. Today, West Virginia officials announced a new remote-worker program that among other things offers a $12,000 incentive to people from moving to the state. The program is being made possible. Thanks to a $25 million donation from Intuit Executive Chairman Brad Smith and his wife Elise. Brad Smith joins us for Yahoo Finance exclusive right now. Brad, good to see you this morning. Here, $25 million. It's a very large donation. Why are you making this pledge?

BRAD SMITH: Brian, it's good to see you as well. And I can start by saying, because everything that we've ever achieved in our lives is because someone in West Virginia saw something in us and invested in us. So this is our chance to pay it forward.

- So Brad, part of this I imagine is that you still see people working from home after the pandemic. We've talked to a lot of executives. Some see them returning back to headquarters, others not so much. Where do you stand?

BRAD SMITH: Well, I have the opportunity to spend a lot of time speaking with my peers, both in the industry and the Silicon Valley as well as across the world. And most are looking at a hybrid model. But many of them, if not all of them, have expanded the percentage of their workforce that can work full-time remotely.

Going into the pandemic, the number suggested roughly 4 million people in the United States were able to live anywhere they wanted and do their jobs. Coming at that estimate is somewhere between 37% to 47%. So there's going to be a large number of people who can live anywhere they want and do their job. And we think West Virginia is the perfect place for them to choose.

- And you know, Brad, thinking about those conversations with your peers, is it going to be a competitive disadvantage if you're an employer in the future who mandates that everybody work from some nice office park somewhere in northern California. You know, we have a big facility out there, many other companies do. Is that going to be the new normal on the other side of this, where you can't you don't really have the juice or the leverage as an employer to say, no, no, no, you have to be here. You can't go where you want to live, where your family is already located.

BRAD SMITH: Well, I do believe it's going to be a part of the consideration set. I think we've seen the pendulum swing all the way to the right when everyone had to come to the office then all the way to the left when everyone was forced to shelter in place. And somewhere in the middle, were all the experimenting in the next year or so to say where is that sweet spot.

But I do know that employees now have gotten a taste for what it's like to be able to live in a new area where they have less commute time. They have a lower cost of living. They have access to outdoor amenities like West Virginia has the offer. And I think that is absolutely going to become a part of the consideration set in this war on talent.

- Yeah, Brad, I imagine this is going to really increase the war on talent. I'm seeing New York City doing this. What do you think-- what do you think that will mean for just the bottom lines of corporate America?

BRAD SMITH: Well, I think there's a benefit. Because first and foremost, when you look at an employees and employee engagement and productivity, they do better work when they're happier in their surroundings. And the study suggests that about a third of people living in major metropolitan areas want to seek a rural destination. In fact, the new geographic preference is rural is the new urban.

And if you think about a place like West Virginia, you have an amazing access to water rapids, , and to snow skiing and to rock climbing, and to trails, and into mountain biking. You can live in these communities are like right out of hallmark. And they're 16% less expensive than the US average. And so employees want to seek those kinds of opportunities. And places like major metropolitan areas like New York and San Francisco and LA, they're going to have to deal with how do they balance that equation.

- So Brad, I'm going to have to ask, what are the tax implications if I were to up and leave New York City, go to West Virginia, take the grant to go along with that. What are maybe some of the issues that someone might face with that? And how does that factor into to this program?

BRAD SMITH: Well, it's a two part answer. I think, first and foremost, the state taxes in West Virginia compare very favorably to the situation you suggested with New York. But then, secondarily, we have an unparalleled alignment of interests in West Virginia right now. Our federal state and local elected officials are working across the aisle to make the state incredibly competitive. And they just passed some state tax laws that make it favorable for remote workers to live in West Virginia. So it only keeps getting better in the situation with West Virginia.

- Brad, I can't think of anyone else better to ask than than you about taxes as executive chairman and to inform a long time CEO. Can corporate America be globally competitive at a 20% tax rate?

BRAD SMITH: You know, that question I believe is one that's going to have to get sorted out. I can say this, I believe that we have opportunity to continue to look for where the right sweet spot is for corporate taxes while still making sure we invest in our infrastructure. The question is, is that 21%? Is it 23? Is it 25? Is it 28? I think CEOs and chairman and women across the country are weighing in on that debate as we speak. I'll leave that to the legislators to make the decision. We add into it, administer the taxes. We don't actually create the tax policy.

- Fair enough. Brad Smith, Executive Chairman Intuit. Good to see you.