California Democrats Deny Reports of Out-Migration Due to State’s 62% Tax Rate on Wealthy
California Democrats denied reports Tuesday of mass departures from the state in the wake of higher taxes on the wealthy.
Also Tuesday Tiger Woods admitted he fled the Golden State due to rising taxes.
Democrats said there is no evidence in the U.S. or California of mass departures in the wake of higher taxes on the wealthy. State Assemblyman Roger Dickinson, D-Sacramento, called Mickelson “the exception rather than the rule.”
“Most of the people who do well love to be in California, and there’s no evidence from past occasions when tax rates were higher on the wealthy that it led to any kind of exodus of those who were wealthy or higher-income earners, so I don’t expect that to be the case this time, either,” Dickinson said.
A study last summer by two Stanford researchers found no net effect in migration out of or into California by the rich after voters in 2004 passed Proposition 63, a 1 percent income tax hike on millionaires to pay for mental health programs. The study’s authors said “the highest-income Californians were less likely to leave the state after the millionaire tax was passed.”
Brown’s press secretary, Gil Duran, said voters agreed to raise taxes to protect education from further budget cuts.
“We have to look beyond our personal interests to where we are going as a society,” he said.
According to the Wall Street Journal, New York, Illinois, New Jersey, Connecticut and Rhode Island led the country last year in out-migration (measured as a share of their population). Not incidentally, the Tax Foundation ranks New York, New Jersey and Rhode Island among the five worst business tax climates.