Yeah Right!

https://apple.news/Apu77lWIyTJ-o3RX7s8DATg

Democrats in California have raised taxes on the rich again and again, and liberals claim it has no effect on taxpayer migration and does no harm to state tax revenue. A new study finds the opposite.
Stanford economists Joshua Rauh and Ryan Shyu analyzed how high earners responded to a 2012 referendum (Prop. 30) backed by Democrats that raised the top marginal rate on taxpayers with more than $1 million of income to 13.3% from 10.3%. The top rates on individuals earning more than $250,000 also rose between one and two percentage points.
First, the researchers examined whether higher taxes caused top earners to leave the state by measuring migration before and after Prop. 30 took effect. They noted a large uptick in the departure rate of taxpayers with more than $5 million in income following the tax hike—from 1.5% to 2.125%—and a commensurate outflow for taxpayers earning between $2 million and $5 million.
This essentially means that the likelihood of a wealthy resident moving out of California increased by about 40% after Prop. 30. Notably, the federal top marginal rate also rose in 2013, which the authors say softened the impact because the deductibility of state taxes also increased. After the GOP tax reform, state and local taxes are no longer fully deductible so the incentive to move is now greater.
Next, the economists examined how incomes changed in response to the tax hike by comparing filings from in-state high earners to non-residents. They found that “California top-earners on average report $522,000 less in taxable income than their counterfactuals in 2012, $357,000 less in 2013, and $599,000 less in 2014.”.....
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How stupid can they be. The wealthier you are the more mobile you are.. I recently met an IT freelancer who was working and living in LA. Part of his compensation package was a quarterly $10,000 bonus. After taxes he took home approximately $4400. He then changed his residence to Montana and his take home was something like $9800....He hasn’t set foot in California in two years!

"Oh! Oh! What a great idea. We can have free shit and get someone else to pay for it."

quote:

Yeah Right!

They never learn...

This is not directly related... but pretty interesting. Where did the people in California come from?
I can't imbed the chart, You'll have to click the link below.

They used to come from Illinois and Missouri. My aunt and uncle were two who went to Cali in the early 1960's. My cousins were born there.
Watch the number born in Mexico change over time:

In the mid-20th century, many new Californians came from states in the Midwest and South. By the 1990s, immigrants from Latin America and Asia dominated new arrivals.

Where Californians were born, 1920-2017

https://calmatters.org/immigra...s-maps-texas-mexico/

California’s Tax-the-Rich Boomerang
A new study shows the 2012 tax hike drove high earners from the state.

By The Editorial Board
Oct. 21, 2019

Democrats in California have raised taxes on the rich again and again, and liberals claim it has no effect on taxpayer migration and does no harm to state tax revenue. A new study finds the opposite.

Stanford economists Joshua Rauh and Ryan Shyu analyzed how high earners responded to a 2012 referendum (Prop. 30) backed by Democrats that raised the top marginal rate on taxpayers with more than $1 million of income to 13.3% from 10.3%. The top rates on individuals earning more than $250,000 also rose between one and two percentage points.
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First, the researchers examined whether higher taxes caused top earners to leave the state by measuring migration before and after Prop. 30 took effect. They noted a large uptick in the departure rate of taxpayers with more than $5 million in income following the tax hike—from 1.5% to 2.125%—and a commensurate outflow for taxpayers earning between $2 million and $5 million.

This essentially means that the likelihood of a wealthy resident moving out of California increased by about 40% after Prop. 30. Notably, the federal top marginal rate also rose in 2013, which the authors say softened the impact because the deductibility of state taxes also increased. After the GOP tax reform, state and local taxes are no longer fully deductible so the incentive to move is now greater.

Next, the economists examined how incomes changed in response to the tax hike by comparing filings from in-state high earners to non-residents. They found that “California top-earners on average report $522,000 less in taxable income than their counterfactuals in 2012, $357,000 less in 2013, and $599,000 less in 2014.”

Non-investment income accounted for most of the decline in earnings. The economists don’t give a reason, but it may be that high earners have responded to the tax hike by working less—for instance, logging fewer billable hours—or deferring compensation.

In sum, the study estimates that outward migration and taxpayer behavioral responses erased 45.2% of the expected revenue gains from the tax hike on top earners. This is especially relevant since liberal economists argue that the rich don’t care about marginal tax rates and raising the top income rate to 70% won’t affect revenue or incentives to work.

The study suggests Sacramento should think again. And watch out for the next recession when investment income and capital gains fall for the affluent. Democrats will have to soak the middle class even more than they already do to finance all of the new spending demands they are creating in the good times (e.g., free health care for undocumented immigrants).

That’s one reason they’re pushing a referendum next year to remove the state’s constitutional tax cap on commercial property. The liberal forecast in California always calls for higher taxes.

https://www.wsj.com/articles/c...oomerang-11571697967

2.125% flee rate is a "Floodgate"? These numbers are insignificant in the 5th biggest economy in the whole freaking world!

I'm not sure California qualifies as an 'economy' any longer

they're fiscally bankrupt, looking for handouts and continuing to raise taxes rather than cut services and eliminate the sanctuary policies and freebies

the more people that leave California, the faster it will be driven into ruin and in the long term I think thats a good thing

quote:

These numbers are insignificant in the 5th biggest economy in the whole freaking world!

The commies love touting that bullshit but it is meaningless when they can barely stay afloat financially.

When Cali asks Washington for another handout, the answer should be "But you're the 5th largest economy in the world."

quote:

Originally posted by cne32507:
2.125% flee rate is a "Floodgate"? These numbers are insignificant in the 5th biggest economy in the whole freaking world!

Too many Leftists/Liberals fleeing, though, and ruining the surrounding states. They should stay home (California) and fix their own problems!

flashguy

This is another reason red states turn blue,more influx of libs with money.

Who would have thought.
I'm not sure who is more stupid. The ones raising taxes thinking they'll just continue to pay it or the ones that move to lower tax states and try to turn their new homeland into another liberal paradise.

quote:

Originally posted by nhtagmember:
I'm not sure California qualifies as an 'economy' any longer

they're fiscally bankrupt, looking for handouts and continuing to raise taxes rather than cut services and eliminate the sanctuary policies and freebies

the more people that leave California, the faster it will be driven into ruin and in the long term I think thats a good thing

Cali's economy just passed Great Britain's. 2.125% millionaires may leave, but I suspect they are more than replaced by people moving up.

If Cali suddenly slid into the sea, the US treasury would be ruined. Their economy is so robust even the liberal do-gooders can't fuck it up, although they are sure trying. But the non-working and retired rich Californians do flee: North Lake Tahoe Nevada is loaded with wealthy Bay Area refugees.

Disclaimer: I am not one of them.

quote:

Their economy is so robust even the liberal do-gooders can't fuck it up, although they are sure trying...

Not so. Illinois and New Jersey will go BK first but Cali won't be far behind.
It's a matter of debt outpacing income.

"But even Gov. Cuomo acknowledged the limits of such a fiscal strategy when he observed, “Tax the rich, tax the rich, tax the rich. The rich leave, and now what do you do?”Forbes article:

Yeah, we agree that taxing the rich is killing the goose. California taxes the rich to redistribute (the high earners) wealth. I just hope Cali's wealth, which is the entrepreneurial spirit of her people, can stand the pressure from Sacramento.

Why is Kentucky in danger? (see Forbes article)

quote:

Originally posted by flashguy:

quote:

Originally posted by cne32507:
2.125% flee rate is a "Floodgate"? These numbers are insignificant in the 5th biggest economy in the whole freaking world!

Too many Leftists/Liberals fleeing, though, and ruining the surrounding states. They should stay home (California) and fix their own problems!

flashguy

Unfortunately, the libs look at that as work so it's easier to just jump ship and then go screw up some other state. As you know, we are already seeing that in Texas. Tarrant county used to be so red it was blinding, but now it teeters on going blue.