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.
There is NO state income tax in Texas.
They want to spread the disease that destroyed The Golden State to other parts of the country? Texas is full up with California transplants and they’re turning the state purple.
An out-of-control state government over-taxing and over-regulating, and an invasion of illegals that the state government has no interest in fighting and in fact actively accommodates.
Just off the top of my head....
High state income tax, high property tax on newer homes, high auto registration fees, high sales tax, high sales tax, are some of the reasons we could not stand CA for more than one year. Not to mention too many illegals allowed to live there.
So where is California at in that curve?
They “woke”?
The nice weather is not enough to keep you there if you must spend every waking hour working to live.
“There is NO state income tax in Texas.”
There will be if the California relocatees have their way.
Arent there some benefits to people moving out?
For example, if 10% of the population moved out of the high priced Bay Area, wouldn’t we see housing prices decline? Which in turn would make the area more affordable for those remaining?
There would be less pressure on all of the infrastructure, from water and power to schools and roads.
Yes, we see a lot of upper middle class people moving away, and I’m not saying it’s good to see productive people depart. I’m saying that overall, there could be some benefits to lesser population in California.
Don't worry about the housing prices. They will drop now that people are moving out because of the 10K deduction limit.
If you make $100k or less the state tax income tax rate is virtually nil.
After that, it is damaging.
If over $250k, it’s downright painful.
But nearly 90% of Californians pay no state income tax.
Oh, and the author tries to explain this exodus as being primarily related to taxes.
I contend it’s primarily related to the import of 3rd world culture and general lawlessness.
The native born just can’t take it anymore.
Apple, Google, Facebook, Twitter, etc. all deliver vapor commodities that can be recreated anywhere. Short term they are kings of the universe. Long term, I’d rather be a bolt manufacturer.
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.
What does California do with all that revenue?
There are currently 2-3 Million Criminal Invaders in Southern California, most if not all are getting subsidized housing, welfare, healthcare,cable,cell phone,...
If Trump would got off his ass and start rounding up ALL ILLEGAL ALIENS in California, starting in SoCal, the cost of Housing will drop 50% overnight and Thousands of Slumlords sucking off the Gubmint Tit will go BANKRUPT!@!!
My two oldest grown kids and families moved last year to Washington and Oregon. Number three is getting married next month and immediately moving to New Mexico. Number four is still at home due to college. One more year. Guess what he will do. After he finishes the wife and I will wind down our business and get out too.
Does Jerry Brown seem senile to anyone else or just me?
Pensions, mexican invasion funding, and choo choo trains to nowhere.
If you have to ask, you CAN afford it.
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