Over the E-mail Transom: High End Class Warfare in CA

Russ Steele

Several people have sent me articles about the 1/3 drop in CA high income earners,  those most capable of leaving the state for more tax friendly states or countries.

The Sac Bee and Hot Air has the story about Brown’s recipe for amplifying disaster in an economic downturn:

Gov. Jerry Brown wants to hit California’s highest-income taxpayers with billions of dollars in new taxes, and is jousting with other groups with their own tax-the-rich measures over which, if any, will win voter approval.

But the number of Californians with $500,000-plus annual incomes declined dramatically from 2007 to 2009 as the state’s economy stagnated, leaving fewer to tax, the California Taxpayers Association points out in a compilation of data from the Franchise Tax Board.

The latest FTB statistical report covers the 2009 tax year, and Cal-Tax points out that it listed just 98,610 California tax returns with adjusted gross income of $500,000 or more, down nearly a third from the 146,221 in 2007. Data for 2010 are not yet available.

ooo

Plus, no one is quite sure why the number of the $500K+ filers dropped by a third.  The downturn certainly has something to do with it, but it might also be that the highest income earners have a greater ability to relocate to a more friendly state.  

It is instructive, to see what happened in Maryland, another socialist state that decided to tax millionaires, they also lost about 1/3 of those with income over a million dollars a year. These millionaires just left the state.

One has to wonder, what would you do if you were targeted by Governor Brown? Welcome increase, or look around for other options. I would vote for the other options.

H/T to multiple readers who sent this article.

 

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

2 Responses to Over the E-mail Transom: High End Class Warfare in CA

  1. Dixon Cruickshank says:

    Russ being from a State that has no income tax and therefore a resident friendly state it is very easy to change a residence without changing anything except that. Many people come to Fla and buy a condo, get a drivers license and sign a Ceritificate of Domicle – stating they are now a resident of Fla – thats it, they keep the house up north and spend a few months here. No State Income Tax anymore, pretty stupid to think that income bracket is that dumb.

  2. Todd Juvinall says:

    Russ is there any info on moneyed people boogying out of Greece?

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