Leaving CA because of high taxes? -- here's who will take your place (Los Angeles: rental, best schools)

[ferretkona]

Originally Posted by nullgeo

A lot of chatter here about how the wealthy and businesses are "leaving California in droves" due to taxes.

CA still has the lowest property tax of the states. No one is leaving because of taxes, they are leaving for many reasons but taxation is not it.

[nullgeo]

Originally Posted by ferretkona

CA still has the lowest property tax of the states. No one is leaving because of taxes, they are leaving for many reasons but taxation is not it.

This would be correct. Another direct hit ...

If people can afford to live where they want, their reasons for leaving are going to be qualitative, not quantitative ... at least 95% of the time ... there are always a few knuckleheads like DMenscha's buddy

[MotleyCrew]

Originally Posted by nullgeo

A lot of chatter here about how the wealthy and businesses are "leaving California in droves" due to taxes. "Vote HELL NO!" etc etc etc ... "only the low income will be left behind" ... etc etc etc.

Think so?

Wealthy French entrepreneurs are preparing to leave France if the new proposed rate there takes effect. Read the article. Any whining sound familiar? Point being: there are a LOT of folks who would love opportunity to move to California. Chinese wealthy by the boatload, too.

Go ahead and get out, whiners. Unfortunately, there will always be many to take your places. Look at the international tax rates on the sidebar chart. Read a bit about the financial / tax attorneys who work advising Europe's rich.

http://www.nytimes.com/2012/08/08/bu...pagewanted=all

They can have it. Perhaps they will continue to vote for the same stupid politicians that cost them their homes in France and eventually CA will crash and burn....or they will have learned a valuable lesson on high taxation and perhaps they will want to keep much of their money and vote in a way that would offend you.

[nullgeo]

Originally Posted by MotleyCrew

They can have it. Perhaps they will continue to vote for the same stupid politicians that cost them their homes in France and eventually CA will crash and burn....or they will have learned a valuable lesson on high taxation and perhaps they will want to keep much of their money and vote in a way that would offend you.

Funny. Most of the greatest sustainable, real growth and development of this country occurred during periods when the highest tax bracket here was higher than what France is proposing now.

Just sayin'

[nullgeo]

Originally Posted by TVC15

... and you come across as a fool for what you have said so far. ... you can bash TX all you want based on your drive through but you only sound like a fool when you do it.

Have fun living in LaLa land as the states economy crawls along.

Gee. Sounds an awful lot like personal attack, doesn't it?
So harsh!

[expatCA]

Originally Posted by nullgeo

Funny. Most of the greatest sustainable, real growth and development of this country occurred during periods when the highest tax bracket here was higher than what France is proposing now.

Just sayin'

And the exemptions were so many that no one paid the maximum rate. President John Kennedy saw the stupidity of that and favored lowering the taxes. He was right.

[nullgeo]

Originally Posted by expatCA

And the exemptions were so many that no one paid the maximum rate. President John Kennedy saw the stupidity of that and favored lowering the taxes. He was right.

A. They have exemptions in France, too
B. The U.S. prospered like crazy under high taxation prior to the Kennedy administration but the rate had gone up to 87% under Eisenhower and rose as high as 91% by the time Kennedy took office.
C. Kennedy's tax cuts dropped the top bracket back down to 70% ... only 5% less than what France is now proposing.
D. U.S. top bracket rate is now pushing only upper 30's%

So, if Kennedy was right, then we should have top tax rates nearly double what we have now.
Case closed.

interesting analysis of effects of tax cuts during those administrations here:
A Reaganite In Camelot?: The Partisan Battle Over JFK’s Tax-Cut Legacy | WBUR
Effect of the Reagan, Kennedy, and Bush Tax Cuts

[Curmudgeon]

Originally Posted by ferretkona

CA still has the lowest property tax of the states. No one is leaving because of taxes, they are leaving for many reasons but taxation is not it.

Au contraire! While not a primary reason for expating California after we retired from the state, some of our research did take into consideration taxation. While CA has a lower property tax rate than other states, the houses are over-valued in many (most?) instances - many still being outrageously expensive and out of the reach of many - leading to property taxes that can be very burdensome.

In my state we are taxed only on 19% of assessed value so while the tax rate is higher (about 3%), we pay considerably less than we would in CA for a house of the same value.

All things in balance! And don't forget income, sales, gasoline and a myriad of other taxes. Add Mello-Roos and generally very high POA/HOA fees where applicable and...

[nullgeo]

Originally Posted by Curmudgeon

Au contraire! While not a primary reason for expating California after we retired from the state, some of our research did take into consideration taxation. While CA has a lower property tax rate than other states, the houses are over-valued in many (most?) instances - many still being outrageously expensive and out of the reach of many - leading to property taxes that can be very burdensome.

In my state we are taxed only on 19% of assessed value so while the tax rate is higher (about 3%), we pay considerably less than we would in CA for a house of the same value.

All things in balance! And don't forget income, sales, gasoline and a myriad of other taxes. Add Mello-Roos and generally very high POA/HOA fees where applicable and...

Yes. What you write is true in the analysis of balance, Chief. However, I think ferretkona's point is that taxes are not the primary consideration for anyone leaving California. That they might go in a +/- column on an analysis sheet, doesn't make them a deciding factor on their own.

[KerrTown]

Originally Posted by TVC15

CA leads the way with 3 and all of those within the same year! TX has Zero as do most states!

Currently those cities are conservative San Bernardino, Stockton, and Mammoth Lakes; all in reliable Red counties for California. It's ironic conservatives are bashing California for this since these are conservative cities in conservative counties! It will only be bankrupt when Los Angeles and San Francisco, the economic engines of the Western United States (and California's liberal coastal areas where the majority live in), go bankrupt.

San Bernardino and Stockton are usually last chances for people to live in California or a place for people to start, so I'm not surprised that they took the economic brunt. The aftermath of the housing crisis might well turn the traditionally red inland areas into blue--a death knell for the CA Republican Party.