Author Topic: California's Leaders Are Watching the Wealthy's Movements  (Read 277 times)

0 Members and 1 Guest are viewing this topic.

Online mystery-ak

  • Owner
  • Administrator
  • Hero Member
  • ******
  • Posts: 248,420
California's Leaders Are Watching the Wealthy's Movements
« on: January 22, 2014, 03:21:56 PM »
http://www.breitbart.com/InstaBlog/2014/01/22/California-s-Leaders-Are-Watching-the-Wealthy-s-Movements

California's Leaders Are Watching the Wealthy's Movements
by John Sexton 22 Jan 2014, 9:25 AM PDT

California state leaders are monitoring millionaires to assess whether a recent jump in income taxes could lead to an exodus of the wealthy.

The San Francisco Chronicle reports that in 2011 "the top 1 percent of tax returns accounted for 41 percent of the state's personal income tax revenues." That was before the passage of Prop. 30 which raised California's top income tax rate to 13.3 percent, the highest in the country. The increasing reliance on soaking the rich means "state leaders are watching closely" the movement of wealthy people out of the state. The Chronicle offers a number of examples of individuals who have decided to move out:

Quote

    Lee Schneider, a hedge fund salesman who works from home, also cited Prop. 30 as the "deciding factor" for his move from Walnut Creek to Austin, Texas, in 2012. The California native had recently built a $2 million house at the foot of Mount Diablo and took a loss on the sale, but "I can make half of it back in one year of tax savings," he says.

    Schneider's neighborhood in Texas, which has no state income tax, is full of cars with license-plate frames from California dealerships. On a flight from Austin to Los Angeles shortly before Christmas, 11 of the 12 seats in the emergency row were occupied by people who had moved from California to Texas, he says.


Of course individual anecdotes don't prove a trend. A spokesman for the California Dept. of Finance says there is "no compelling data in the economics or demographics" which would lead them to anticipate an exodus. He cites a 2012 study which found no increase in outward migration as a result of an earlier 1 percent tax increase for mental health. Of course the Prop. 30 increase was larger and applied retroactively.

The Chronicle concludes that it's too soon to tell if there is a trend building. For now at least, California leaders seem confident the people paying a disproportionate percentage of California's taxes will stay put.

Support the USO

Online mountaineer

  • Member
  • Hero Member
  • ****
  • Posts: 34,017
Re: California's Leaders Are Watching the Wealthy's Movements
« Reply #1 on: January 22, 2014, 03:24:39 PM »
Gee, I hope they're focusing on Hollywood.
Just being unique doesn't make you useful.

Offline Cincinnatus

  • Hero Member
  • ****
  • Posts: 5,514
Re: California's Leaders Are Watching the Wealthy's Movements
« Reply #2 on: January 22, 2014, 03:47:15 PM »
Gee, I hope they're focusing on Hollywood

How much you want to bet that some of the loudest and most self-righteous Hollywood Libs have legal residence established in some other lower tax rate state and commute to "Hollywood" as their office? 
We shall never be abandoned by Heaven while we act worthy of its aid ~~ Samuel Adams

Offline xfreeper

  • Hero Member
  • ****
  • Posts: 1,546
Re: California's Leaders Are Watching the Wealthy's Movements
« Reply #3 on: January 22, 2014, 04:07:40 PM »
If I were Ca I'd be more concerned about the top 2 - 70% than the top 1%. Once they are gone you can tax the top 1% 100% and it won't be enough.

Offline Rapunzel

  • Hero Member
  • ****
  • Posts: 71,719
Re: California's Leaders Are Watching the Wealthy's Movements
« Reply #4 on: January 22, 2014, 04:36:13 PM »
My friends who have a business in CA and in Florida and had a house on both coasts and here in Havasu sold their CA house this year and only have the Florida and AZ houses and are selling the CA business to their son...... They are thrilled with the lower taxes in Florida.
“The time is now near at hand which must probably determine, whether Americans are to be, Freemen, or Slaves.” G Washington July 2, 1776


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf