New tax increases in California stir debate about adding to exodus
California Gov. Jerry Brown successfully pushed the tax increase by suggesting that high-earners must shoulder the largest burden in bailing out the state, particularly its debt-ridden public school system.
The top state-federal tax rate for Californians in 2013 would climb to 52%.
However, high unemployment and government debt have already sent residents fleeing in large numbers – an estimated 225,000 annually for the past 10 years.
“More is never enough for these people"
“California politicians can fleece people in 2012, but there’s no guarantee they can do the same in 2013 and later years. People can leave.”
The tax increase atop other bad economic factors – including high gas and sales taxes – also have small and large businesses packing.
“With high taxes and heavy regulations, it’s just difficult to produce those widgets at a lower price than somebody in, say, Texas.”
Ex-Californians over the past decade have already put roughly $5.67 billion into Nevada’s economy as well as $4.96 billion into Arizona and $4.07 billion in Texas
California resident and pro golfer Tiger Woods famously took his millions to Florida, another of the seven U.S. states with no state income tax.
But as always, Statists ignore reality and come up with talking points and a "study" which ignores the exodus.
The liberal-leaning think thank California Budget Project declined to talk about the issue but points to a study that concluded Hollywood executives, Silicon Valley entrepreneurs or other higher-earning Californians will not leave, based on the aftermath of a 2005 so-called “millionaires tax” increase.
Executive Director Chris Hoene told The Los Angeles Times that the Stanford Center of Poverty and Inequity study “dispels one of the most persistent myths about state tax policy.”
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Edited by Rogerdodger, 23 December 2012 - 11:21 AM.
