Author Topic: Wealthy exodus to escape new tax rules worries California Democrats  (Read 403 times)

Online Bronx

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I see a New Jersey exit tax in Caliofornia's near future.

Wealthy exodus to escape new tax rules worries California Democrats

The Republican-backed federal tax bill flipped the tables on a never-ending question for California politicians: Will high taxes lead the state’s wealthiest residents to flee the Golden State for the comparable tax havens of Florida, Nevada and Texas?

Republicans reliably raise that alarm when Democrats advocate for tax increases, like the 2012 and 2016 ballot initiatives that levied a new income tax on very high-earning residents.

But now, with the federal tax bill cutting off deductions that benefited well-off Californians, the state’s Democrats suddenly are singing the GOP song about a potential millionaire exodus.

People sleep peacefully at night because there are a few tough men prepared to do violence on their behalf.

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Offline Hoofer

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Re: Wealthy exodus to escape new tax rules worries California Democrats
« Reply #1 on: January 19, 2018, 04:54:14 PM »
from the same article...
“The new tax law is kind of like icing on the cake for some who were thinking about moving out of the state,” said Fiona Ma, a Democrat on the tax-collecting Board of Equalization who is running for state treasurer. “If they don’t have to stay here because of work or family, it doesn’t give them a lot of incentive.”

So far, research on the migration of wealthy Californians suggests that most very well off people are tied to their communities or businesses and do not often migrate for tax reasons.

A 2012 study by Stanford researchers, for example, found that millionaires are mostly rooted to their locations for economic reasons.

The authors expanded on their report for a 2016 study that incorporated more data from other states. It found, “elites are embedded in the regions where they achieve success, and they have limited interest in moving to procure tax advantages.”
Previously, the state income taxes on high earners only affected residents when their incomes exceeded certain thresholds. If their income depended on stock market gains or bonuses, they didn’t pay the special taxes every year.

When does good news suck?   When you live in California, and President Trump (libs hate that) spurs rapid economic growth!

Hmmm..... the stock market is up 31%, you say....?   There's Texas... naahhh, too hot.  Florida.... naaahhh, God's waiting room.  Tennessee, just right!   Yessir!  There's an income tax free state for every kind of Bear!
All animals are created equal; Some just take longer to cook.   Survival is keeping an eye on those around you...

Offline Walter Josh

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Re: Wealthy exodus to escape new tax rules worries California Democrats
« Reply #2 on: January 22, 2018, 01:51:47 PM »
Article belabors the obvious.
Since Kennedy in 60; Vt, Ct, RI, NJ; among several,
have seen continual EC vote erosion,
Hardly a surprise.


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