Posted on 05/19/2018 11:36:01 AM PDT by SeekAndFind
In recent years, the number of people moving away from the state of California has greatly outnumbered the number of people moving into the state. Reasons for the mass exodus include rising crime, the worst traffic in the western world, a growing homelessness epidemic, wildfires, earthquakes and crazy politicians that do some of the stupidest things imaginable. But for most families, the decision to leave California comes down to one basic factor…
Money.
For a lot of Californians, it simply does not make economic sense to remain in the state any longer. So over the past decade approximately 5 million people have picked up and moved to another state, and many believe that this trend is going to accelerate if California does not start doing things differently. The following is from an excellent article by Kristin Tate, the author of a new book entitled “How Do I Tax Thee?: A Field Guide to the Great American Rip-Off“…
The largest socioeconomic segment moving from California is the upper-middle class. The state is home to some of the most burdensome taxes and regulations in the nation. Meanwhile, its social engineering — from green energy to wealth redistribution — have made many working families poorer. As California begins its long decline, the influx outward is picking up in earnest.
I don’t know anyone that enjoys being taxed at extremely high levels, and in California extracting more and more revenue from the citizens has become an art form. California’s highest marginal tax rate is now a whopping 13.3 percent, and on average taxpayers are hit with a 9.3 percent rate…
Taxes also are much lower in Arizona than California. California residents pay nearly twice as much in state income taxes. The individual income tax rate is 4.54 percent in Arizona. It’s 9.3 percent in California, according to the Arizona Sun Corridor.
Under the old rules, the tax burden imposed upon Californians was mitigated by federal rules allowing for the deduction of state taxes. But now the new tax bill has made some major changes, and some experts believe that this will actually accelerate the exodus out of the state of California. The following comes from CNBC…
In an op-ed in the Wall Street Journal headlined “So Long, California. Sayonara, New York,” Laffer and Moore (who have both advised President Donald Trump) say the new tax bill will cause a net 800,000 people to move out of California and New York over the next three years.
The tax changes limit the deduction of state and local taxes to $10,000, so many high-earning taxpayers in high-tax states will actually face a tax increase under the new tax code.
Of course taxation is only part of the equation.
For many, the exceedingly high cost of housing in California is the primary reason that they have chosen to leave. At this point, the average price of a home in California is more than $200,000 above the national average…
According to Zillow, the average price for a home in the U.S. was $261,000 in February 2018. The average home price in California was $469,000. In Oklahoma, it was $116,000.
And that $469,000 figure is for the state as a whole.
In Santa Clara County (the home of Google and Apple), the median price of a single family home is 1.4 million dollars.
Yes, you read that correctly.
In some areas of northern California, the housing bubble is completely out of control. For example, just recently a burned out husk of a home sold for more than $900,000…
Real estate agent Holly Barr says she’s never had a listing generate as much attention as the one on Bird Avenue in the San Jose neighborhood of Willow Glen. The house caught fire two years ago during a remodeling job. What was left was a burned-out husk of a California bungalow sitting on 5,800 square feet of land.
When Barr put the property on the market in April for $800,000, the listing made international headlines. It sold for over $900,000 — in less than a week. The burned down house will be razed and a new property will be built there that will likely sell for far more.
Well, if families cannot afford to buy a home, why don’t they just rent?
Unfortunately, we have seen rents spiral completely out of control as well…
The median monthly rent for a one-bedroom apartment in the Los Angeles area is $2,249, and in San Francisco it’s almost $3,400, according to Zumper. The median rent for a two-bedroom apartment in the Los Angeles area is $3,200 and in San Francisco about $4,500. By comparison, the median rent for a one-bedroom in Las Vegas is $925 and in Phoenix $945, and for a two-bedroom in Las Vegas $1,122 and in Phoenix $1,137.
Ouch.
Sadly, rapidly rising prices have greatly contributed to the homelessness epidemic that California is dealing with right now.
Even though we are supposedly in an “economic recovery”, the number of homeless people in Los Angeles has risen by an astounding 50 percent over the last five years…
The homelessness issue has achieved a special distinction in Los Angeles. Having increased 50% during the past five years, “it’s supplanted traffic as the topic everyone talks about,’’ says Tom Waldman, spokesman for regional homeless agency.
The homeless are as visible as the Hollywood sign. More than two years after Mayor Eric Garcetti declared a “state of emergency,’’ about 41,000 are “unsheltered’’ — sleeping in cars, outside City Hall, under freeway overpasses. The Los Angeles Times calls it “a human tragedy of extraordinary proportions.’’
And it isn’t just families that are leaving.
In fact, sometimes entire companies are picking up and relocating to another state. For example, Price Pump Manufacturing Co. is leaving the Golden State and is heading for Idaho…
Price Pump Manufacturing Co., an 86-year-old company that has operated in Sonoma for 70 years, bought 6 acres of land in the Sky Ranch Business Center for about $86,000. The company plans to build a 40,000-square-foot plant at the industrial site east of Interstate 84 and south of Franklin Road.
The high cost of manufacturing in California made it more difficult to compete with other sellers in the United States and across the globe, president and CEO Bob Piazza said. He said the marketplace helps determines prices, and Price Pump could not simply raise prices to maintain a reasonable return on investment.
And I found another article today about a company that has decided to leave California and is relocating to Phoenix, Arizona…
A company that manufactures workbenches and lab furniture is relocating to Goodyear, near Phoenix, Arizona, to save money, while creating 30 new jobs in Arizona.
Matt McConnell, director of sales and marketing for IAC Industries, said the move will increase the stability and longevity of his business. IAC is located in Brea, California.
“The commercial property costs in California versus the commercial property costs in other states” made the decision easy, he said.
As long as tech giants such as Google and Apple are thriving, the trends that are driving such dramatic change in the state are likely to continue.
So we are likely to continue to see a very large exodus out of California, and those that are leaving will continue to fundamentally change the communities that they are moving into.
Because there is such a disparity between the number of people moving out and the number of people moving in, it actually costs nearly twice as much to take a U-Haul from California to Texas as it does to take a U-Haul from Texas to California…
The cost of popular moving truck services, like U-Haul, is largely created through the ironclad rules of supply and demand. Turns out, there is much higher demand for trucks leaving high-tax blue states heading to low-tax red states than vice versa.
A route from California to Texas, for example, is more than twice as expensive as a route from Texas to California. Want to go from Los Angeles to Dallas? $2,558. Returning back? $1,232.
Once upon a time, millions of young Americans dreamed of moving to California. It was a land of gorgeous weather, movie stars and endless opportunity.
But now the California Dream has turned into the California nightmare, and people are heading out of the state in droves.
Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.
BECAUSE THEY CAN!!!
“What does California do with all that revenue?”
Hookers and cocaine for democrats.
Not exactly true. If you get income from dividends or interest you pay income tax in NH (or TN, another faux no tax state). That's why nobody with real money or retirees will live there.
If you work via a "job" sure, they don't tax that income, but save and invest there at your own peril.
“Does Jerry Brown seem senile to anyone else or just me?”
When a person spends that many years in the Earl of Hell’s weskit pocket, it affects him.
Cal. People sell their properties for mega bucks
And can buy huge properties elsewhere.
Just wait until CA politicians discover the Seattle corporate head tax ...
No sales tax either.
Apple, Google, Facebook, Twitter, etc. all deliver vapor commodities ...
Being a bolt manufacture compared to a nearly 1 trillion valuation company like Apple ...
Moonbeam’s skull is empty and his brains are fried. Talk to people who worked around him at the Capitol if you want validation. And, Liberalism is a mental disease with no cure.
“There is NO state income tax in Texas.”
Californians, don’t believe this guy! Texas taxes are some of the highest in the country! In fact, everything is high here, cost of living twice of California! Besides, we are all a bunch of gun carrying Bible Thumpers! You would be much happier in Colorado, trust me!
“The state income tax in NH is zero. We have constitutional carry. We have very, very low crime.
It’s quite nice here in fact.
If we HAD a state income tax, we wouldn’t know what to do with the money.”
But you have Massholes which is pretty terrifying.
I've heard the spiders in Texas can carry off an entire Volkswagen filled with liberals. Then there's the wasps the size of Cessnas, the asteroid storms, the lava flash floods, and the cannibals. Man, I sure wouldn't want to go there.
I find it sad and an American tragedy.
True, but Texas does have one of the highest property taxes, it’s how they pay for everything. Unfortunately still less than Cali when one considers the cost of a home.
Used to live there FWIW
I don’t want them to leave. We already have too many moonbats in Utah.
Being a disabled veteran I don’t pay property taxes.
But I think we really know the answer to that question without reading the article, don't we?
I left California in 2009-—right after the stock market meltdown/Obama election. Lived there from 1099-2009 mostly in Marin County—one of the best places with its great weather, awesome landscape and full blown Liberal clowns. Had a great business—great life. Moved back to CT and have had unbelievable hardship since...but that’s another story.
It does not take a genius to figure out the upcoming meltdown-—saw the state invaded by immigrant locusts—swarming over and devouring all the resourced, just a matter of time till the State implodes. It is a shame—loved Northern California—best times of my life. Shame what is going on—truly a modern day Sodom and Gamorrah—
1988—2009. Miss Marin County so much-—the redwood trees, wonderful rolling hills—my natural habitat is Golden Gate National Recreation Area—I left my heart and soul there——
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