California policies have economic consequences. Last year the State had a $100 billion surplus. This year it is a $32 billion deficit, and growing. One reason it is growing is because tax revenues have decreased.
“The study, conducted by MyEListing.com, found that California lost more than $340 million in 2021 IRS tax revenue due to residents moving.
While about 40% of Californians have previously indicated that they had “seriously considered” leaving the Golden State, mainly due to cost of living, the migration of high-earners from California is a bit more mysterious.
“Despite its numerous attractions … beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals. This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California,” the website wrote in its analysis.
This will accelerate as Sacramento kills more jobs, make it more expensive to hire people and unions continue their stranglehold on government and business. While revenues are down, imagine the amount of investment that is not happening in California, but going to other, Free States. California is collapsing like watching a train wreck in slow motion.
California lost more than $300 million in tax revenue from wealthy residents moving: study
by: Travis Schlepp, KTLA, 7/27/23 https://ktla.com/news/california/california-lost-more-than-300-million-in-tax-revenue-from-wealthy-residents-moving-study/
For the third straight year, the state of California has experienced a decline in population, according to U.S. Census Bureau data, and many of those packing up and heading east are some of the state’s wealthiest.
A study of IRS Migration Data by an online real estate portal found that no state experienced a larger loss of tax income from migration than California.
The study, conducted by MyEListing.com, found that California lost more than $340 million in 2021 IRS tax revenue due to residents moving.
While about 40% of Californians have previously indicated that they had “seriously considered” leaving the Golden State, mainly due to cost of living, the migration of high-earners from California is a bit more mysterious.
“Despite its numerous attractions … beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals. This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California,” the website wrote in its analysis.
California is the entertainment capital of the world as well as home to Silicon Valley, but it appears some of the highest earners no longer need to keep their California residency to maintain their careers and businesses.
Technology firebrand Elon Musk, at one point the richest man in the world, made a highly publicized move from California to Texas last year. Entertainers like Joe Rogan and Rob Schneider, who have been openly critical about the politics of the state, have recently packed up and moved.
Earlier this year, actor Scott Baio announced he was moving to Florida after 45 years as a California resident.
Florida was the big winner in IRS tax income from migration, the study found. The Sunshine State experienced a $12.4 billion increase in tax revenue, according to the real estate study.
Florida, Texas and Arizona were the states getting the most IRS tax benefit from migration. California, New York and Illinois were the three biggest losers.
