Skip to comments.California tax hike caused 'significant' out-migration of top-bracket millionaire residents
Posted on 10/08/2019 7:56:49 PM PDT by grundle
Its not just federal tax changes that drive residents from high- to low-income tax states turns out hiking statewide taxes on the wealthy drives them out in droves, too.
A new study published on Monday showed that when California raised its income tax rates it caused a substantial one-time out-migration response among wealthy residents, who left for lower-tax destinations.
The study looked at increases to state income tax rates approved by California voters in Nov. 2012 (Propoisition 30) of one to three percentage points for upper-income households. It raised the top marginal tax rate to 13.3 percent for incomes of more than $1 million.
The new rates were retroactively applied to 2012 and scheduled to expire at the end of 2018. They have since been extended through 2030.
The study found a consequent sharp uptick in wealthy taxpayer departures in 2013 when compared with previous years, particularly among those earning between $2 million to $5 million and more than $5 million.
About 0.8 percent of wealthy residents who would have had to pay the top tax rate left the state which was considered abnormally high when compared with years prior. And the wealthy individuals who stayed reported lower incomes.
Among top-bracket California taxpayers, outward migration and behavioral responses by stayers together eroded 45.2 percent of the windfall tax revenues from the reform in 2013, researchers Joshua Rauh and Ryan Shyu wrote.
The majority of those residents left for states with zero income tax, Rauh and Shyu said.
(Excerpt) Read more at finance.yahoo.com ...
But it doesn’t make any sense!!...
You could try to tell that to the Gov. and his merry band of Legislators, but it is counterproductive to argue with stupid.
.... One millionaire is only One Vote ...... 10,000 Unskilled migrants .... is 10,000 votes .... That’s all that is considered by the Democrats at this juncture in our History .....
Who could have seen that coming? (other than every conservative on the planet?)
FReepers wanting to avoid a visit to Yahoo, always a good idea, can find the original Fox Business article here:
Herding millionaire cats is harder than it looks. ;-)
The high taxes are going to hasten my departure as well. But the 3rd world power failures might cause me to flee even sooner.
I ain’t no millionaire, but I left California for a no income tax state in that same time frame.
After all, I do hope to become a millionaire some day.
I got out in late 2005 and relocated to Texas. It was, without doubt, the best move of my life.
There was some degree of loss and cost to us initially, but in time we wound up in a much better circumstance than we ever were in California.
Not to mention the benefit of having my kids grow up in America, instead of a semi third world environment.
This is why the dems want to take over the country - so there’s no place to go to hide from confiscatory taxes.
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