Posted on 02/21/2008 4:07:43 AM PST by Man50D
WASHINGTON – California, which once lured Americans from near and far, is now driving out millions of the most productive residents – including high percentages of the most affluent.
"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."
And it's not just the rich leaving.
Based on data from moving companies, California had the second-highest domestic population out-flow of any state in 2005, according to the report, "despite the beautiful weather, beaches, and mountains."
The bad news for California is that it faces $14 billion deficit this year, despite boasting one of the highest tax burdens in the nation.
The report, published by the American Legislative Exchange Council shows jobs are not just leaving the country – they are moving from state to state, with the population following.
"States are in direct competition with each other for human capital and business investment. State governments that think they can attract jobs and people, and grow their economies, by taxing their citizens at a higher rate than their neighbors are sadly mistaken," said Democratic Arkansas state Sen. Steve Faris, ALEC's 2008 national chairman. "Legislators should take a close look at where their state ranks in this book and use it as a tool to help them improve."
(Excerpt) Read more at worldnetdaily.com ...
>>It’s a wonder that middle class people can afford to live in California. If they start leaving in droves, then the state will really be in trouble.<<
Actually, we really can’t.
Just figured out if I had made $300 more dollars last year I’d have qualifed as “rich” and earned myself a %9.3 tax bracket. (To be combined with the interest they charge us if one doesn’t pay income taxes quarterly.)
Funny how we can’t contemplate even trying to own a house or have children.
Last week, I relocated my son from Chula Vista, CA to my 2nd house in Pocatello. His real estate business took a big hit from the sub-prime mortgage problems. A couple weeks ago, there was a murder committed 75 yards from my son's front door. Three black males pulled two brother's in their 20's out of a vehicle in the condominium parking lot. One was killed on the spot, the other was kidnapped and released a couple miles away. It was in a "nice" part of town. The Eastlake area of Chula Vista.
My son is rapidly spinning up to resume his real estate business with an Idaho broker's license in addition to his CA broker's license. It is a lot more favorable business environment.
California did that shortly after I sold my house. They assess a sales tax on the home sale. If you buy another house in California, you can get the sales tax back. If you leave the state, CA keeps the tax.
Suffice to say, I would move to cash ASAP and stop purchasing stocks if that appears to be the intended direction.
Are California rich moving or just purchasing or renting a second home for tax purposes?
Where I live I see Bentley GTs that live here year round but are are reged in other states. Same with Motor Coaches.
It’s cheaper to rent a place in another state claim residency there, than to pay the CA DMV fees.
Same for Boats.
As the US ages the older middle class will migrate to the cheaper areas.
PS I had no idea that the US had balkanized.
Sounds like Colorado’s becoming more and more like Maryland, sad to say. When will your legislature introduce a microstammping bill? 3....2....1....
The illegals are flooding in to replace the productive, high income earners. The lack of control over voter registration disenfranchises legal citizens. Don't expect the demographics to ever shift back to the conservative side again.
All right, already. I’m moving to Los Angeles. NOT!
Yes. It is terrible. All of you who are leaving, better get and go. I'll just have to stay here and suffer.
Yes. It is terrible. All of you who are leaving, better get and go. I'll just have to stay here and suffer.
Have them look at Phoenix or Tucson. There is a crisis in housing (so lots of cheap homes) in the outlying areas of Phoenix like Queen Creek or Buckeye. Phoenix is pretty high tech, Tucson not as much but I’d recommend either one. I lived there 20 years. You can choose the environment you want: city, farm, mountains, suburbs, etc. The governor has only 3 years left and is term limited out. And the legislature is one of the most conservative in the country. Tucson is probably the nicest city in the state. I miss it a lot! But I do love Fresno.
If your scenario comes to pass, we will be in a major Depression, probably worse than the original Depression, because people are so much less self-reliant. The permanent welfare class will riot or turn to crime, and the spoiled baby boomers will have their life’s savings wiped out.
Exactly right. Boxer, Feinstein, Pelosi, Gray Davis and Arnold are all outsiders.
Are you sure it is a sales tax and not a withholding requirement for state income tax?
If it is a sales tax, I beat them out of the tax on an almost $1,000,000 sale. I'm not going to pay it now either!
Semper Fi
An Old Man
I should have known better than to even read the comments on this thread.
Nice stereotyping and insults toward Californians. California used to be a lovely place until the leftists started moving in and taking over. So now the normal people get blamed.
*I* moved to GA from CA. I haven’t tried to change a thing. I love it here, and I vote CONSERVATIVELY.
I believe New Jersey has recently done just that!
Why the slam? My entire post was : More and more of us are deciding we don’t want to live in a mexican barrio. That means I "just don't like hard facts???"
Yeah here in LA the crime rate overall has dropped, but gang crime is way up. A big reason for the drop is due to a lot of the riff raff moving out to Riverside county and surrounding areas. Check out their stats.
Here is an excerpt from a recent story on LA's falling crime stats : " ... The rate fell even faster in Los Angeles, which had 42,786 crimes of violence in 2004, down 12.4 percent from a year earlier. Still, despite having less than half of New York's population, LA recorded nearly as many violent crimes, including 518 murders, three more than in 2003. "
Illegals still account for 90% or so of the outstanding murder warrants here. I have had my car crashed into 3 times in one year. Each time by illegals.
I was installing computers for LAUSD in East LA and came out after a days work and my car was stolen. I spent a month on the bus before I got it back half destroyed.
Whats your point, got hair up up your butt?
We have lunatics here are FreeRepublic who assure us that the flood of illegals into California isn't any big deal at all, and will in fact revitalize the state and the GOP. As I said, those people are lunatics.
Yeah, but it doesn't blow near as bad as Arizona.
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