Another study shows that there is no California exodus (condo, income tax)

[CA4Now]

Originally Posted by CaliRestoration

None of this is promising, it screams "borrowed time".

Now, Cali. Isn't it time to start posting your charts in the Alaska forum?

[payutenyodagimas]

Originally Posted by Finper

That’s true for people moving here from say China or the Middle East but the richest person here Zuckerburg works here and runs his business here. What if he and other tech millionaires decide to move out of Ca and take their business with them? What then?

CA has 40M population.

even bigger than Canada

you mean to say they dont want to make money with that kind of market?

[Taksan]

Originally Posted by Tulemutt

“Your” as you are using it, is “you’re” ... speaking of “learning” ...

That said, I didn’t say the Stanford study gave a figure of how many high income people are moving into California. I said - in response to your saying studies like the Stanford one linked “mean nothing” - that in absence of you contributing credible, linked research, I’ll stick with studies “from named, credible sources such as Stanford”. Note the plurals I used: “studies”, “sources”. You can find demographic information a number of places ... such as the US Census Bureau - as cited in this article:

Who moves to California? The wealthier and better educated, mostly
https://www.latimes.com/business/la-...221-story.html

There is no study or data available that can differentiate between the two groups of people... the data exists no doubt but I’ve never seen a study that compiled it or any sources that can point to it.
I stand by my assertion that it is rare for high income people to become tax residents of California without significant other mitigating circumstances (divorces, family etc) with the exception of a certain NYC-LA revolving door back and forth in very specific industries such as IT and Entertainment law and VC.
Most high income California residents became so whilst residing in California.
For someone making $2m for example ...state taxes are $240k a year ...Do you think it’s worth paying $240,000 a year extra of (now after SALT changes) tax to live in California over Nevada ?
The effective tax rate for someone earning that amount is 49.75% in California.... it’s clearly out of control.

[Tulemutt]

Originally Posted by Taksan

There is no study or data available that can differentiate between the two groups of people... the data exists no doubt but I’ve never seen a study that compiled it or any sources that can point to it.
I stand by my assertion that it is rare for high income people to become tax residents of California without significant other mitigating circumstances (divorces, family etc) with the exception of a certain NYC-LA revolving door back and forth in very specific industries such as IT and Entertainment law and VC.
Most high income California residents became so whilst residing in California.
For someone making $2m for example ...state taxes are $240k a year ...Do you think it’s worth paying $240,000 a year extra of (now after SALT changes) tax to live in California over Nevada ?
The effective tax rate for someone earning that amount is 49.75% in California.... it’s clearly out of control.

Yes. It is.

And you can stand asserting until hell freezes over if you like. I hear the polar vortex is reaching southward ...

[TCROX]

Finper-
Zuckerburg can hide his money offshore like the google guy does- He’s in CA and simply diverts the money before his fellow trump haters can get to it

[ikoolu]

i can tell you all from my little circle of friends that several of us left- we all go tired paying 10% to moonbeam and to the feds with a effective rate of 48% -

added to the wacko laws and the illegals issues we left - Calif is not worth the hassle and is was not longer fun place to live

Most high earners come to Calif for the chance to make serious bucks - and those too leave of houses in several states and dont have legal residency

added corporate taxes and the rate for subs corps- its just not worth the headache any more

for those of you who stay -congrats i applaud you but for my little corner in so calif we just got feed up - life is to short to put up the crap we had to deal with everyday

[2sleepy]

Originally Posted by Taksan

There is no study or data available that can differentiate between the two groups of people... the data exists no doubt but I’ve never seen a study that compiled it or any sources that can point to it.
I stand by my assertion that it is rare for high income people to become tax residents of California without significant other mitigating circumstances (divorces, family etc) with the exception of a certain NYC-LA revolving door back and forth in very specific industries such as IT and Entertainment law and VC.
Most high income California residents became so whilst residing in California.
For someone making $2m for example ...state taxes are $240k a year ...Do you think it’s worth paying $240,000 a year extra of (now after SALT changes) tax to live in California over Nevada ?
The effective tax rate for someone earning that amount is 49.75% in California.... it’s clearly out of control.

To answer your question, having lived in both Nevada and California I would pay NOT to have to live in Nevada again, but let's look at some other states.

(total tax burden)
Portland Oregon 47.51%
Hawaii 48.42%
West Virginia 44.16%

And the picture changes quite a bit when you examine progressivity of state income tax. Look at the tax rates for a single person with an income of $50,000

(state tax burden)
California 3.22%
Oregon 7.29%
West Virginia 4.11%
Hawaii 6.21%

So yes, California state income tax hits the very rich, but it's also more progressive for the middle class wage earner than other states, and I would guess that the lucky person how had a 2 million AGI started out with far higher figure before itemized deductions, something that the toddler's tax plan took away from the rest of us.

[CA4Now]

Originally Posted by Taksan

For someone making $2m for example ...state taxes are $240k a year ...Do you think it’s worth paying $240,000 a year extra of (now after SALT changes) tax to live in California over Nevada ?

Absolutely. For the two in our extended family making just under this, they would never consider another state (especially Nevada, of all places).

[Taksan]

Originally Posted by CA4Now

Absolutely. For the two in our extended family making just under this, they would never consider another state (especially Nevada, of all places).

I used Nevada as an example because I know of several people who actually are essentially Californians who have substantial ties to California but actually reside technically in Nevada despite them owning homes in LA. I can certainly understand people wanting to stay in California if it’s their place of business as essentially the extra cost of taxes are simply a extension of the cost of doing business or for someone (a lawyer friend of mine comes to mind) who has basically built his whole career around entertainment law in LA but for the more mobile investor or business owner with several location opportunities I see no benefits only detrimental impacts. I’d PREFER to live in California as I actually really like the place LA in particular but I’d have to pay too much tax and give up way too many freedoms to make that an option. But if California suddenly became business friendly and respected the constitution I’d be there in a heartbeat but it isn’t going to happen they are too far down the road to change back towards the right path.

[CaliRestoration]

Originally Posted by Tulemutt

Because he can (try). Same reason nearly everything is attempted in the world ...

Why is he trying to tax drinking water at all?