Posted on 01/21/2013 7:24:08 PM PST by SeekAndFind
Is it any wonder that many small and medium sized businesses are moving out of California? In the recent elections, California Voters Sock It To The Rich. As the Wall Street Journal noted, some are promising businesses a better life elsewhere. Being courted must be refreshing but it is important for a company and its owners to have reasonable expectations and to budget for drilling down into California’s rules.
After all, leaving is not always easy. A California resident is anyone in the state for other than a temporary or transitory purpose. See FTB Publication 1031. Plus, it includes anyone domiciled in California who is outside the state for a temporary or transitory purpose. The burden is on you to show you’re not a Californian. If you’re in California for more than 9 months, you are presumed a resident.
Yet if your job requires you to be outside the state, it usually takes 18 months to be presumed no longer a resident. Your domicile is your true, fixed permanent home, the place where you intend to return even when you’re gone. You can have only one domicile, but many facts are relevant. Start with where you are employed and where you own a home.
If you own several, compare size and value. Consider your homeowner’s property tax exemption, where your spouse and children reside, etc. Your days inside and outside the state are important, as is the purpose of your travels. Where do you have bank accounts and belong to social, religious, professional and other organizations?
Voter registration, vehicle registration and driver’s licenses count. Where you own or operate businesses counts, as does the relative income and time you devote to them. You can own investments far and wide, but you can expect them to be compared.
(Excerpt) Read more at forbes.com ...
Limbaugh chronicled how difficult it was for him to leave NY. It took years to get out of their hooks.
You think checking out of California is hard?
Try checking out of the US of A...
Gerard Depardieu had it easier leaving France.
Here’s one Californian who is going to learn his lesson the HARD WAY:
SEE HERE:
http://www.redstate.com/2013/01/21/phil-mickelson-tax/
Phil Mickelson hints tax changes may spur career change.
Excerpt:
On the day President Obama was sworn in for his second term, [top professional golfer Phil] Mickelson sent shock waves through the Humana Challenge when he said the political landscape in the United States was causing him to seriously contemplate his future in golf.
[snip]
“If you add up all the federal and you look at the disability and the unemployment and the Social Security and state, my tax rate is 62, 63 percent,” Mickelson said. “So I’ve got to make some decisions on what to do.”
[snip]
In December, Mickelson, who was part of a group that had bought the San Diego Padres four months earlier, abruptly announced that he was no longer involved in the business deal. His reversal came shortly after California voters approved Proposition 30, which imposed a 13.3 percent tax rate on incomes of more than $1 million.
Asked Sunday if the election results played a role in his decision to sever his ties with the Padres’ ownership group, Mickelson replied, “Yeah, absolutely.”
This is why progressives despise federalism. What good is having complete power in one state if people can just move to some other state.
RE: What good is having complete power in one state if people can just move to some other state.
Speaking of Federalism — Does California impose an EXIT TAX to those who plan to leave (i.e., no longer want to reside in) the state?
“Too Liberal: 1%
Heck, it’s the liberalism that drives all the other indicators!
I’m wondering about Panama - #2 on International Living’s Best Countries to Retire.
So what are the problems with getting out of here?
Interesting stats...thanks for posting!
Shouldn’t “Too Liberal” be “All of the Above”? LOL
RE: So what are the problems with getting out of here?
Some questions:
1) Are you planning on relinquishing US citizenship? It isn’t that simple. You have the IRS to deal with.
2) Are you planning to make money in Panama? ( say, rent out a property )? You will of course have to report that income to the IRS.
American is one of a handful of countries that TAXES citizens on income from ALL POSSIBLE SOURCES.
If you are a German living and working in the US, you are not required to file the income you make in the US to the German tax office. If on the other hand, you are an American living and working in Germany, YOU ARE REQUIRED to report your income in Germany for taxation purposes.
In fact, I know of green card holders who became citizens later who left their country of origin and by some good fortune, inherited property or money from a dead relative from that country. THEY ARE REQUIRED TO INFORM THE IRS OF THAT.
I’m heading to the Philippines like some Freepers. Former American territory, kids were taught English the same time as tagalog and the newspapers are mostly in English. I also have dibs on a condo in the financial district and only paid 25K for the 27th floor (yeah, that cheap). The traffic though, is one of the worst.
“Mr. Obama, tear down this wall.”
That’s talking to a brick wall :)
Are they still putting forth the idea of splitting CA into two states? I think the Northern population was pushing for it a while ago, but of course, the southern half needs the revenues to support the illegal population.
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