WSJ says L.A. people selling homes, flocking to Phoenix and Vegas as tax realities set it (Nice: credit card, houses)

[Grlzrl]

Originally Posted by jacktravern

This thread is full of it. I keep hearing about all of these people who supposedly are leaving CA, but its nobody i know. And these streets are still incredibly crowded.

Do you know many rich people? Those are the ones who are leaving.

[CA4Now]

Originally Posted by Grlzrl

Do you know many rich people? Those are the ones who are leaving.

Or not.

Far more millionaires move into California than leave, despite the state’s highest-in-the-nation income-tax rate, a new study shows.
https://www.mercurynews.com/2018/07/...ornia-or-dont/

[DougStark]

[quote=DougStark;54584469][quote=oping00;54569187]Everything you said is my exp living in Phoenix for 4 years, the heat knocked me out and all you do spend the summertime inside and phoenix other than a few outdoorsy things is already boring enough.

Also while many complain about air quality in LA , Phoenix is worst and has alot of ozone in the air.



My opinion:
Phoenix does NOT have worse air quality than LA, the IE, or the San Joaquin valley. Check the stats yourself.

And complaining about having to stay indoors all summer in Phx b/c of the heat? That's exactly what most of the rest of the nation does during the winter to escape the cold! Plus, we don't have to drive in ice, snow, road salt everywhere. Forget it.

[NyWriterdude]

Originally Posted by DougStark

Yeah, and they're either young and want the CA dream, are poor and want to get the generous benefits, or they're illegals. None of these groups help the State's financial picture.

No. A lot of rich people move in to. People around the world purchase California properties.

So an exodus from places like Southern California or New York just means people come in to replace them, so real estate prices either stay the same or go up.

If they did go down, more people would move in and push prices up.

[expatCA]

Originally Posted by CA4Now

Or not.

Far more millionaires move into California than leave, despite the state’s highest-in-the-nation income-tax rate, a new study shows.
https://www.mercurynews.com/2018/07/...ornia-or-dont/

But they do not pay taxes on the millions they already have. Already paid. Many have investments in Bonds and other tax free programs so their income is not that high for taxation.

[Taksan]

Originally Posted by CA4Now

Or not.

Far more millionaires move into California than leave, despite the state’s highest-in-the-nation income-tax rate, a new study shows.
https://www.mercurynews.com/2018/07/...ornia-or-dont/

That study is flawed as it doesn’t differentiate between people who were income millionaires prior to moving to California and people who became millionaires whilst living in California.

Silicon Valley has created more asset millionaires then the rest of the country combined over the past 25 years.

People who are already income millionaires do not move to California they are essentially created in California and the recent trends post SALT tax changes show that income millionaires are leaving where possible. The fund management industry’s exodus from NY,NJ and CT this year is a sign of things to come for California.

All high tax states will suffer under SALT .... I’d suggest California is insulated a bit by the Entertainment and Tech industries essentially but it will change. For every person in the 13.3% bracket who ceases to be tax resident in California the state loses the equivalent of 79 average taxpayers revenue. So one rich person leaving is the same as 79 middle class people leaving.

It won’t take long before Commiefornia reaps what it has sowed.

[Taksan]

Originally Posted by NyWriterdude

No. A lot of rich people move in to. People around the world purchase California properties.

So an exodus from places like Southern California or New York just means people come in to replace them, so real estate prices either stay the same or go up.

If they did go down, more people would move in and push prices up.

The people purchasing California properties or Central Park apartmentsin NYC for that matter are NOT tax residents.


I’m thinking of buying a property in SoCal ... my sister has a ranch in SoCal just north of San Diego, a business associate of mine just bought a $17 million property in Malibu .... none of these people are ever going to pay one cent of income tax to the state of California.

[curiousgeorge5]

Originally Posted by kttam186290

Albuquerque's got all of the crime and dysfunction of Las Vegas without any entertainment factor to redeem it.

Basically, it's a huge Victorville on steroids.

Victorville is Inland Empire, IIRC. Is the crime there as bad as Albuquerque on a per capita basis?

Originally Posted by opasert

It strikes me that like so much else, California is the Cassandra of what is to come. Real poor, real rich and no one left in between but Government service workers. Right now you can arbitrage. You take your real estate winnings from LA to Tusla and live well.

To be in the rare air of the rich it matters not how hard you work or where you went to school. America won't admit this, but getting ahead is more a lottery than something repeatable for people. Smart, evil, disabled, man, woman don't matter because all of it is tied to luck of the draw of your profession and the market manipulation involved. It could be one day people discover the main difference between Rio and Houston is that people in Houston still think they can get ahead like they did in the past. That jury is still out because if California is the future then you cannot get ahead like we did the past.

"California is the Cassandra of what is to come" I hope that's not the case economically.

There are actually other countries with more opportunities for upward mobility. Off topic, I know.

Originally Posted by Taksan

That study is flawed as it doesn’t differentiate between people who were income millionaires prior to moving to California and people who became millionaires whilst living in California.

Silicon Valley has created more asset millionaires then the rest of the country combined over the past 25 years.

People who are already income millionaires do not move to California they are essentially created in California and the recent trends post SALT tax changes show that income millionaires are leaving where possible. The fund management industry’s exodus from NY,NJ and CT this year is a sign of things to come for California.

All high tax states will suffer under SALT .... I’d suggest California is insulated a bit by the Entertainment and Tech industries essentially but it will change. For every person in the 13.3% bracket who ceases to be tax resident in California the state loses the equivalent of 79 average taxpayers revenue. So one rich person leaving is the same as 79 middle class people leaving.

It won’t take long before Commiefornia reaps what it has sowed.

High tax states will definitely suffer with new tax laws. OTOH, those laws can change again in the future.

Originally Posted by Taksan

The people purchasing California properties or Central Park apartmentsin NYC for that matter are NOT tax residents.


I’m thinking of buying a property in SoCal ... my sister has a ranch in SoCal just north of San Diego, a business associate of mine just bought a $17 million property in Malibu .... none of these people are ever going to pay one cent of income tax to the state of California.

The real estate taxes will be substantial, I'm guessing.

[CA4Now]

Originally Posted by Taksan

That study is flawed as it doesn’t differentiate between people who were income millionaires prior to moving to California and people who became millionaires whilst living in California.

The only millionaires I know here--admittedly very few--have no intention of leaving California. But they've also lived here for most of their lives.

More on this:

Leaving California: Here's who's moving out, who's moving in: (It sure doesn't look as if it's the millionaires moving out) https://www.sandiegouniontribune.com...htmlstory.html

Millionaires Leaving California Over Taxes Is Nothing New: https://www.forbes.com/sites/robertw.../#492e28b26f67

[Ultrarunner]

Many with means move for taxes but still keep a foothold here.

A retired Silicon Valley Entrepreneur has a beautiful Carmel Estate but makes darn sure he is never in California more than he is out...

He splits time between Alaska and Hawaii...

We have had some interesting conversations and according to him... NOT paying California Income Tax pays for his Hawaii, Alaska and his travels...

Closer to home... plenty of very wealthy maintaining Nevada residency... especially in Glenbrook NV... and it is again avoiding CA Income Taxes.