Wealthy Taxpayers Are Fleeing California
by Joel B. Pollak
Wealthy taxpayers are fleeing California, hurting the economy and the budgets of the governments that have raised the cost of living in the Golden State.
That’s according to the Los Angeles Times, which reported Tuesday that while wealthy and talented people used to move into California, that trend has recently been reversed:
The reversal, largely in response to the state’s high taxes and soaring cost of living, has begun to damage California’s overall economy. And, by cutting into tax revenues, has delivered punishing blows to state and local governments.
State budget analysts recently projected a record $68-billion deficit in the next fiscal year because of a 25% drop in personal income tax collection in 2023. Some city, county and other local taxing authorities, particularly in the San Francisco Bay Area, have also recorded revenue declines.…
The accelerating exodus from California in recent years, of both companies and people, has been well documented. The pandemic-induced rise in remote work, inflated housing prices and changing social conditions have spurred more Californians to pull up stakes.