Posted on 04/27/2018 7:43:36 AM PDT by Responsibility2nd
Conservative economists Arthur Laffer and Stephen Moore are predicting a new mass exodus of wealth from New York and California because of the new tax law. But academics who have studied taxes and migration call the forecast "pure nonsense."
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.
Laffer and Moore say that the effective income-tax rate (what people actually pay) for high earners in California will jump from 8.5 percent to 13 percent. Wealthy Manhattanites would face a similar increase, they say. Those who make $10 million or more will see a potential tax hike of 50 percent or more, according to their analysis.
Those hikes, they say, will cause an exodus of residents to move to lower or no-income tax states.
"In years to come, millions of people, thousands of businesses and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states," they said. They say 800,000 people will move from California and New York over the next three years. Connecticut, New Jersey and Minnesota will lose a combined 500,000 people over the same period.
(Excerpt) Read more at msn.com ...
And one of the the first things the majority of them do when they land in their new state is to demand the same kind of Nanny-State BIG-GOV that drove them from their home state in the first place.
Don’t come to Arizona either. We are about to set a bounty on liberals in Mohave county
EXACTLY
It’s been reported that people have been fleeing these states for years. Not so much for New York, but people are still flocking to California as the state still continues to grow in population.
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Really? U-Haul can’t provide enough rentals in California. They’ve all gone out of state. And any increases in population is due to illegal immigration.
“Tell all liberal snowflakes exiting these Progressive paradises that Wisconsin during January is colder than Siberia..”
It is! Used to have to go to Green Bay.
the govt workers plunder the state and then live elsewhere....
just stay where you plundered and enjoy the poor streets, the high crime, the increasing poverty, etc...
no to Washington but I’m afraid its too late...the state is full of ex Californicators looking to buy up our homes, lake properties, etc...
What they’re not mentioning is all the companies who will move for the same reason, and the employees they will bring with them. Don’t think that was mentioned in the article, but, to me, that’s a prime factor!
Half the time I thought I was in Mexico. I'm sorry to say from what I just saw I wouldn't live there if you gave me a free casa, I mean house.
“The first to go are Conservatives who want out of Liberal hell holes like CA and NY.”
Yes, a lot of the high income, hard working California conservatives, who shoulder a ton of high taxes from income taxes, property taxes and Sales taxes will be moving.
If they have college age kids, they know how anti re their kids, the UC system is.
White and/or Asian kids are turned down by the liberal UC system. Then, they get scholarships from good schools out of California.
If no college kids now, they will soon find out when their kids with basically all A’s get turned down for having a B or two.
So why stay in California and pay its high taxes when your intelligent kids can’t get accepted at any UC system.
Property taxes in Texas are in line with other prosperous and growing states.
But we have one advantage that most others states don’t:
No State Income Tax.
Arizona is full, too.
Stop posting our town as “the best air in America” or “the best place to come” in magazines!
and IF you Californians come, leave CA behind!
*this from a former lifelong Californian who moved 13 years ago and LEFT CA in the rearview mirror
Says the FReeper from Floriduh.
(smirk)
Bakersfield has turned to schit. Shootings every single day. Theft is out of control. Illegal Mexicans and their anchor kids in every single neighborhood.
But how many of you that sit and judge me
Have ever walked the streets of Bakersfield?
Leftists fleeing the utopia they created. Like a plague of locusts, wherever they go they will leave a wake of ruin behind them as they recreate the failed utopia and flee it for the next unsuspecting pleasant spot.
Property taxes in Texas are in line with other prosperous and growing states.
But we have one advantage that most others states don’t:
No State Income Tax.
The above is true with the exception of property taxes due to our Prop 13, in California.
If you have lived in California for a year or more, your property taxes are fixed to your purchase price based again on prop 13 appraisal at the time you bought your home.
We have owned our California Home about 4 decades ago, shortly before Prop 13 went into effect. Our yearly property taxes are basically the same now as they were back then thanks to Prop 13.
The property taxes in some of the desirable places in Texas
for new or great condition 3 or 4 bedroom can be huge according to relatives and friends who have researched property taxes there and here.
If you have a home in California valued at $1,000,000, and you buy a similar home in Texas to avoid Fed taxes, your property tax is very high and will never go down, only up.
As usual, there is no free ride for tax payers/working people.
Do you earn several million a year?
I wouldn't put it past them. Almost analogous to the situation of serfs in medieval Europe. At first it was mutual (the best fighters uses all his money to buy armor and weapons, build defenses, train, and ultimately protect everyone. They serfs, thus made safe, produce the food for everyone. Everyone wins) but the guys with all the swords eventually said "yeah, we're not really equal anymore. You work for me. And you can never leave. Now get back to work, I'm hungry!".
But they did have an out. If you could escape and get to a free town and be there for one year without behind hauled back to your serfdom, the law said you were to be released from your service. Soon we'll probably have to cite that precedent in common law to get out of these leftist nightmares.
If you have a home in California valued at $1,000,000, and you buy a similar home in Texas to avoid Fed taxes, your property tax is very high and will never go down, only up.
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I think we all know that a million dollar California home will get you a 3/2/2 at maybe 1,500 sq. ft.
The same home in Texas sells for no more than $180,000
http://www.businessinsider.com/million-dollar-listing-new-york-los-angeles-housing-market-2017-10
Prop 13 be damned. There is no way a young person should live and buy in California when there is Texas to consider.
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