Some version of Directive 10-289 to prevent the “rich” from leaving their punitive tax state coming soon !
I guess the so callled “rich” don’t want to be “eaten” afterall and are leaving CA by the hundreds of thousands. CA can rot and fall into the Pacific... It won’t be missed.
A credible source pretending to be a reporter on a blog would provide their last name.
Conservatives will be blamed, and the MSM will support it.
the libtards in Washington will bailout the libtards in California. It will be another too big to fail and libtards are emotionalists and don’t care about principles.
This is a rather strange article: It begins by saying that high income Californians have “voted with their feet” and moved out of state, causing an increased revenue shortfall. But then it goes on for 5 paragraphs, citing studies and articles to “prove” that the “super rich” are not leaving.
My own anecdotal evidence suggests that the “super rich” may indeed not flee in large numbers: Generally they either “don’t feel it” personally, don’t mind, or can manipulate their finances such that the high taxes have little effect on them. Of course those same manipulations tend to damage economic growth...
I suspect that more important, what instead happens is that businesses gradually “bleed out” even if the top end CEO’s and such stay — after all, California is overall a beautiful / nice climate place to live. (If I didn’t need to worry about money, I’d consider it myself.) More important, new entrepreneurs and businesses look at the costs of a place like CA and tend to not move into it, depriving the state of vital “new blood”. Then add large numbers of people who are middle and upper middle class, including many retirees, who move to states with lower costs of living.
All said, reckless fiscal policies and a poor business climate probably harm CA more than taxpayers leaving to avoid the high taxes. But then again, all those factors and more are inextricably intertwined.
It’s a small example of the future of Al Amerika.
To the Socialist-RATs, no tax is ever enough.
“The beatings will continue until morale improves.”
a. Tax increases haven’t hit yet.
b. Falling revenues seem more likely to be the effect of the leading edge of a recession. Earnings, sales are down.
c. The article discussed the sociology of high income earners. Which is fine as far as that goes. People who are wealthy in California aren’t likely to leave just because of this increase. The real problem though is that business formation and growth in California is busted. New rich people are more likely to start getting rich elsewhere. And there is the marginal effect of tax avoidance.
The taxes on the rich are retroactive to 1-1-2012. How is that not a bill of attainder?
California has already gone over the cliff, of sanity. It’s now in free fall. Waiting, waiting, just waiting to hear the crunch as it hits the rocks below.
Ha Ha Ha
The addict needs higher and higher doses to achieve the high they crave.
Giving more taxes to Sacramento is like giving heroin to an addict.
If you want less of something, tax it. Raise income taxes and income drops. Less income equals less revenue. CA isn’t smarter than a 5th grader.
Gee, this is so “unexpected”.
Raise Taxes and revenue falls what a coincidence.
If you tax something, you get less of it. If you subsidize something, you get more of it. California taxes the creation of wealth, and it subsidizes illegal immigration. ‘Nuff said.