REPORT: Democrats Worry As Wealthy People Flee California Over High Taxes
Guest post by Mike LaChance at American Lookout:
People have a tendency to vote on policy with their feet. If the policies in one state are bad, they move to another state with better policies. In Liberal California, wealthy people are fleeing the state due to high taxes and it has Democrats very worried.
The Sacramento Bee reports:
Wealthy exodus to escape new tax rules worries California Democrats
The Republican-backed federal tax bill flipped the tables on a never-ending question for California politicians: Will high taxes lead the state’s wealthiest residents to flee the Golden State for the comparable tax havens of Florida, Nevada and Texas?
Republicans reliably raise that alarm when Democrats advocate for tax increases, like the 2012 and 2016 ballot initiatives that levied a new income tax on very high-earning residents.
But now, with the federal tax bill cutting off deductions that benefited well-off Californians, the state’s Democrats suddenly are singing the GOP song about a potential millionaire exodus.
“People with higher incomes pay a lot more money, and some of them may be tempted to leave,” Gov. Jerry Brown said when he unveiled his 2018-19 budget proposal last week. “This was an assault by the Republicans in Congress against California.”…
Democratic state lawmakers are worried because California relies so heavily on the income taxes it collects from high earners to fund government services. The state’s wealthiest 1 percent, for instance, pay 48 percent of its income tax, and the departure of just a few families could lead to a noticeable hit to state general fund revenue.
California could fix this problem easily by embracing a slightly less far left policy but they probably won’t.