Economic Slump, Rich Flee CA’s High Taxes

In our nation’s increasingly ‘universal’ economy, increased tax pressure is being applied to those deemed wealthy. Although this has historically been a successful method for raising government funds, the wealthy are starting to fight back. However, the fight is somewhat anticlimactic because the wealthy aren’t slinging fists. They are simply walking away:

Raising taxes on the wealthy has become a popular budget fix for many states.

The problem: the wealthy sometimes leave. California’s rich are leaving for lower-tax states. The state (slogan: “We’ll Owe You”) has among the highest tax regimes in the country, with a top marginal tax rate of 9.3% and an additional 1% tax on those earning $1 million or more a year.

Three states with no personal income taxes—Nevada, Texas, and Washington—are among the top five destinations for the highest-income fifth of California households, according to the Institutes own data.

The real lesson here is that high taxes and broken government chase away rich and poor alike

If this trend continues, what will our country do? For years, I have predicted this trend would come, even on a national scale. I am fearful that we will drive global businesses from our country, as they will seek shelter from the heavy burden of taxes.

via Rich (and Poor) Flee California Taxes – The Wealth Report – WSJ.