Millionaires flee Cali after tax hike


#1

I hope I didn’t offend anyone… in an effort save space in the headline I abbreviated California to Cali.

https://www.forbes.com/sites/patrickgleason/2018/07/06/millionaires-flee-california-after-tax-hike/#43edc12b4189


#2

Thanks for posting this link above robertmidwest. Interesting story.

JUL 6, 2018 @ 04:24 PM

Millionaires Flee California After Tax Hike

. . . Prop. 30 raised the state’s top income tax rate by 8%, increasing it one percentage point from 12.3% to 13.3%, which is now the highest state income tax rate in the nation. Prop. 30 also hiked the tax rate on income between $300,000 and $500,000 by two percentage points, and raised the rate on income in excess of $500,000 by three percentage points. . . .

. . . This isn’t surprising for those who are familiar with other attempts to soak the rich with punitive state income tax hikes on high earners. Take what happened in Maryland after Martin O’Malley, the former Democratic presidential candidate and governor, imposed a millionaires tax hike a decade ago. . . .

. . . In 2008, in an attempt to address a state budget deficit brought about by Maryland’s structural overspending problem, then-Gov. O’Malley championed and enacted a new millionaire income tax bracket, raising the rate to 6.25%. A May 2009 Wall Street Journal editorial described the disappearance of one-third of the state’s millionaires in the year following O’Malley’s tax increase:

One year later, nobody’s grinning.
One-third of the millionaires have disappeared from Maryland tax rolls.
In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April.
This year there were 2,000, which the state comptroller’s office concedes is a ‘substantial decline.’
On those missing returns, the government collects 6.25% of nothing.

Instead of the state coffers gaining the extra $106 million the politicians predicted,
millionaires paid $100 million less in taxes than they did last year – even at higher rates

All of this means that the burden of paying for bloated government in Annapolis will fall on the middle class.
Thanks to the futility of soaking the rich, these working families will now pay Mr. O’Malley’s ‘fair share.’” . . .

. . . it’s clear that up is the only direction in which most California legislators want to take the state’s overall tax burden . . .

(Some minor formatting changes and emphasis mine)


#3

common sense isn’t common!


#4

O’Malley was a job and business killer in md, or so his reputation held. It is no wonder a Republican governor Hogan is so popular approaching reelection.


#5

Major problem in high tax states.

People “vote with their feet”.

There are moving companies that publish the flow of people in and out.


#6

This must be really painful, when combined with loosing SALT deductions on their Fed bill.


#7

Not many people remember (or probably even know) but Ronald Reagan in his first term lowered the income tax by a very substantial margin. The left said it was a gift to the rich on the backs of the middle class and the poor. (The middle class got a tax reduction also) What nobody on the left wanted to admit as a result of this massive ‘gift to the wealthy’, but the U.S. Treasury collected more in tax revenue than it ever had. Making a place attractive invites and encourages capital formation, business formation, job growth, and a host of other benefits. Lowering taxes does this. Raising taxes doesn’t. Why don’t the dems understand this? Why don’t they ever want to learn from history? Is it just that it is tough to do so with all that egg on your face?


#8

It’s not just the millionaires who are getting the heck out, it’s the unwashed masses too. This is what happens when a state is run into the ground by one party basically doing whatever they want.


#9

I would characterize it differently
The employed/washed masses are also leaving, selling their property and buying cheap out of state.
The unwashed masses are still moving in, tent cities abound.


#10

Facts differ.

http://worldpopulationreview.com/states/california-population/
http://worldpopulationreview.com/states/california-population/


#11

Blockquote
I would characterize it differently
The employed/washed masses are also leaving, selling their property and buying cheap out of state.
The unwashed masses are still moving in, tent cities abound.

I’ve always understood the term “unwashed masses” as referring to the general population that didn’t agree with the group in power. ( The collective group of people who are considered to be uneducated, uninformed, or in some other way unqualified for inclusion in the speaker’s elite circles ). That was the context of my wording… that the millionaires are leaving, as well as the middle class that are sick of it all.


#12

I’m not understanding how your chart and “facts differ” factor into anything that was said. Yes, you can have TONS upon TONS of people, legal and illegal, pour into California and grow the population. The topic was millionaires leaving California, and I just added that it isn’t only the millionaires that are doing the leaving. I’m missing how any of this has to do with your chart and the implication that I left facts out.


#13

Actually, what people forget is Reagan lowered some taxes and raised others. So we can’t say that a tax cut raised revenue. Inflation, growth, demographics and tax increases also were a factor.


#14

There is a major tangible end result:

click here google you tube tent cities https://www.youtube.com/watch?v=uFujzJrvNXA&t=338s


#15

Planning to leave:

click here google you tube tent cities https://www.youtube.com/watch?v=lAL-6VG8OeE


#16

click here google you tube tax hikes moving https://www.youtube.com/watch?v=g1qFxq76Kwk

New York, in this case.

Using IRS data.


#17

Moving out:

click here google you tube moving out https://www.youtube.com/watch?v=Xe4ZcmKby6k


#18

The population of California continues to grow. While you are right about the dynamic nature of of entry and departure, the dire story of it having been run into the ground is not consistent with its continuing growth.
Also in GDP
image
https://www.deptofnumbers.com/gdp/california/

If you would like to test the idea of “run into the ground”, you might consider the locations where people become millionaires.


#19

So now you are changing the OP’s whole thread subject to my comment of the state being run into the ground?

I have no idea what your argument is dvdjs, unless you just like to argue.

So, I “might want to consider where people become millionaires…” Please. :roll_eyes: I was born into what was to become Silicon Valley and lived there until I was 26. I know the area, and I also know what it has turned into.

-Yes, the population of California continues to grow, no one is arguing that.

-Millionaires are leaving the state because of the highest taxes in the country.

-Middle class folks are also leaving because California is WAY too expensive to live here. It is SO expensive in fact, that in part of the Bay Area, folks making $117,000.00 are considered to qualify for low income housing.

-There are now more homeless people all over the state than there has ever been before. These thousands of homeless have no place to keep clean or use bathrooms, so guess what the sidewalks and sides of the freeways have become? A medical convention due to take place in San Francisco was just cancelled because they didn’t want their people stepping in human excrement.

-Because of years and years of faulty mismanaged forest policies exacerbated by drought, we now have gigantic wildfires. I can tell you breathing in particulate matter is not fun, but especially hard on the very young and the elderly.

-Most Californian’s are asleep at the wheel and have no idea what is coming in 2020. Unless something drastic happens to change things, our governor signed the paperwork that all Californians will be allowed only 55 gallons of water per day, to change to only 50 gallons of water per day by 2030. O.K., if we are THAT short of water, why haven’t they built more reservoirs to store all the water that floods different places when it rains? Folks are going to love being able to say," Hummm, I will have to wait until day after tomorrow to shower since I need to wash clothes today and I have to run the dishwasher tomorrow…".

So, the highest taxes in the USA, can’t afford housing, homelessness rampant, and 50 gallons of water per day… yeah, it is/gonna be a great quality of life here… You can put up as many of your graphs as you want dvdjs, and it won’t change the FACT that the middle class of California is fed-up, and more of them have left this state than are moving in.

Sorry for my part in derailing your thread Robertmidwest, :bouquet:


#20

I no longer respond to him as he routinely takes one small point out of context, twists it around and uses it to changes the topic. In this topic, for example, Tuscany and Theo discuss the outflow of upper and middle classes, and the inflow of poor (many of which are illegal immigrants welcomed by the state).

He then posts a graph showing increasing population, and argues that it disproves their point. It doesn’t, but now the thread is at risk hijacking by him about it.

Others here have the time to respond to him…I don’t as I find it useless.

Also, regarding the rest of your post: I guarantee the elitist/leftist Democrats in California won’t be limited to 50 gallons of water a day, and with their incredibly high incomes they can afford the housing, and live in gated communities protected from the homeless.


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