Rich people are leaving California

[Mick1]

They don’t want to pay the 13.3% taxes (for the $1 mms. earners). I suppose I don’t blame them.

‘We’re leaving!’: Rich Americans are ditching California and ‘taking their tax dollars with them.’ Here’s why they’re leaving — and where they’re headed (msn.com)

Audaces fortuna iuvat

[Legend]

13+ percent state income tax. That is just shocking.

I’m in my “prime earning years” and would really struggle with a state that taxes income that highly. If nothing has changed, CA still has no long term capital gains rate either.

I guess you really have to love it. And, I know plenty of people who do. They would tell me that they can make way more money in California than elsewhere. I get that, or used to.

Meanwhile I partially operate through an S-Corp that my state taxes income from at a flat 3%.  that’s a full 10 percentage points below the CA marginal rate.  I’m small fry when it comes to business and that delta is the equivalent of roughly a year earlier retirement for every year I work.

My in-laws live in Southern California and I have had to explain to them that it would be massively costly for me to move our family there.  Not to mention I would be a felon because I do stuff that California hates like paint my own cars, change my own oil, and own firearms with detachable magazines and things that go up.

And, yes I love the weather in the Bay Area when I visit.

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Sic transit gloria mundi (so shut up and get back to work)

[Author]

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