Wednesday, January 23, 2013

Taxpayer exodus from California escalating

More and more California job creators are leaving because of tax increases, a major news outlet is reporting.

Fox News talked to numerous high earners affected by Proposition 30, many of whom declined to give their names because of a fear of being "harassed" by the Franchise Tax Board.

From the report:
"We feel like the politically convenient target," he said. "Governor Brown used the tyranny of the majority to steal from the minority. It's that simple. The majority isn't going to vote to increase their taxes -- stick it to the guy next door. That is the mentality in California and while we love the state and will miss the beaches, we've had it. We're out."

A venture capitalist wrote: "I am thinking about Seattle. In our business, my income comes in big pops when we sell a company. So when those events happen I will always be taxed at the highest rate."

A Napa County winemaker added: "Truly frightening. I was a little shocked when we looked at our first paycheck of 2013. I have nothing taken out above the minimum required taxes and found my net pay was 46 percent of the gross. Any wonder we, as I'm sure many others, are considering fleeing CA for an income tax free state, in our case Jackson Hole, WY. " [...]

While most of the evidence of an exodus so far is anecdotal, some tax analysts expect the evidence to show up in declining tax revenues from the wealthy by 2014, as they figure out how to legally relocate without actually leaving the Golden State nine months a year.
It's not just the rich who are leaving. We have relatives who may move to Oregon because of gun and hunting regulations. And then there's the financially struggling Sacramento Kings, who are leaving for Seattle because Sacramento city leaders are content with just being a stale government town.

California will be an interesting place five years from now.

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