Californians fleeing to Nevada

Californians fleeing to Nevada

Nevada sign, flickrTaxes have consequences. That’s something tax increasers don’t understand. Remember how Gov. Jerry Brown and others campaigned last year for Prop. 30, saying millionaires had to “pay their fair share” (even though “millionaire” was defined, in California math, as someone making $250,000 a year)? But they insisted the tax increase would not drive people out. Wrong.

The reality, from Joel Fox:

Anecdotal, yes, but a news report indicates that warnings made during the Prop 30 campaign last year are playing out — higher taxes are sending some Californians across the state line to Nevada.

Under the headline, California Rich Seek Nevada Tax Haven, in the Tahoe Daily Tribune, the article says that Californians accounted for 43 percent of the 288 sales so far this year in Incline Village and Crystal Bay. More to the point, an Incline Village real estate broker reports that of the 39 sales on Nevada shores of Lake Tahoe to Californians since the beginning of the year, 15 buyers, forty percent of the total, specifically said they moved to Nevada to escape the Prop. 30 tax hikes. 

Other brokers confirmed that there has been an increase in high-end housing sales that the reporter wrote was attributed to California residents’ “desire to get beyond the reach of the Golden State taxman.” Sales on the Nevada side of Lake Tahoe were stronger than on the California side with a broker quoted as saying, “Prop. 30 probably has something to do with that.”

Some would argue the numbers reflected in the article are not significant. However, since the California tax system is built something like an upside down pyramid with the few at the bottom holding up the structure, a small but significant stream of high end taxpayers moving to low tax states could have consequences on California’s bottom line.

I hope so. I hope tax collections plunge sharply so the taxpayers get to keep more of their money and the state’s finances implode faster. The faster that happens, the faster we can enact reforms.

By leaving California for Nevada, a wealthy person’s income tax rate drops from 53 percent (federal and state) to 40 percent. That’s a whopping 25 percent drop. More from Fox:

Perhaps more troubling was the note in the article about “California entrepreneurs, many of them owners of mid-sized companies in the Central Valley, who want to move their companies lock-stock-and-barrel to Nevada.”

According to the report, the business owners want to keep their companies close while at the same time protecting themselves from the taxman.

Many of these firms are S Corporations, which pay taxes at the high 53 percent California level, same as for persons. By moving to Nevada, their company also gets a 25 percent tax cut.

Here’s a slogan: “California. It’s a place to leave.”

 

35 comments

Write a comment
  1. Sean Morham
    Sean Morham 4 September, 2013, 13:09

    It is obvious that the tax revenue system is broken because it depends on high incomes too much. This is a great time for broad based tax increases to kick start the California economy. Also, income taxes should go up in the middle class but exempt gov t salaries and pensions. This would be like a tax cut for the public sector and help to address the imbalances with the private secore, re: salaries and bendfits.

    Reply this comment
    • Grizzly907LA
      Grizzly907LA 4 September, 2013, 16:38

      ….. Govt salaries exempt? Good Marxist filth. I have a better idea. Lets cut taxes, eliminate onerous regulations and send the illegals back to Mexico. I would also cut the salaries of the state workers, cancel their pensions and make them pay into a 401k.

      Reply this comment
    • Wing Cun
      Wing Cun 4 September, 2013, 19:12

      Brilliant suggestions.

      Reply this comment
    • Glenn Walling
      Glenn Walling 4 September, 2013, 22:06

      Sean,
      Thank you for confirming the obvious next step. You liberals will now proceed to target the rest of us. I just love how you describe exactly how these broad based tax increases should in your view, be imposed on the middle class exempting government salaries and pensions. What an unbelievably arrogant and stupid statement given that bloated governmental salaries and benefits are a primary driver in bankrupting fire districts, cities and the State. I can cite example after example. And guess what Sean, the rest of us can leave too. I certainly intend to leave and take my money with me. That process has already started and I can assure you I am not the only one. Did it ever occur to you that spending less is the solution, not taxing more?

      Reply this comment
    • Rex the Wonderdog!
      Rex the Wonderdog! 5 September, 2013, 22:48

      Also, income taxes should go up in the middle class but exempt gov t salaries and pensions. This would be like a tax cut for the public sector and help to address the imbalances with the private secore, re: salaries and bendfits.
      ==
      LOL..Yes, because we want GED educated cops and firewhiners to make 10 times more than a medical doctor with 15 years of college under their belt, since cops and firewhiners are already making double that of a private sector medical doctor!

      Reply this comment
  2. Dyspeptic
    Dyspeptic 4 September, 2013, 13:18

    How long will it be until Nevada, currently a low tax purple state, goes solid blue? The Nevada legislature is already Democrat controlled, though not by large margins as in Commiefornia. The Demoncrat aligned casino union thugs run Las Vegas and Reno where most of the money and votes are. Moving to the Silver State might only be a temporary reprieve from the Prog-Nazi onslaught.

    Reply this comment
    • Tax Target
      Tax Target 4 September, 2013, 20:05

      I am getting dyspeptic with the deflection of Kalifornsky’s tax and spend addiction to the supposed problems in Nevada… I’ve left the gulag and I couldn’t be happier…

      Gas – $10.00 a tankful cheaper
      Electric – over $200 / month in savings
      Food cheaper
      Roads in better repair and easier to get around

      Kalifornsky? I hope it fails miserably – why? to teach a substantive economic lesson to the political morons in Sacrameningrad!

      Reply this comment
      • skippingdog
        skippingdog 6 September, 2013, 20:12

        Nevada will be a nice shade of blue very soon, as will Texas. Great days ahead for America and the return of sane government.

        Reply this comment
  3. SkippingDog
    SkippingDog 4 September, 2013, 19:42

    Even Joel Fox doesn’t claim this is any more than anecdotal information.

    Reply this comment
    • Rex the Wonderdog!
      Rex the Wonderdog! 5 September, 2013, 22:49

      Yeah, right!….. 4DCA, her WE COME!

      Reply this comment
      • skippingdog
        skippingdog 6 September, 2013, 10:53

        That should keep you out of other mischief for the next year or so.

        Reply this comment
        • Rex the Wonderdog!
          Rex the Wonderdog! 6 September, 2013, 13:13

          But not you lil buddy!….you wanted to play ball, batter up!

          Reply this comment
          • skippingdog
            skippingdog 6 September, 2013, 19:59

            Your batting average doesn’t present much of a concern to anybody, and your ERA is through the ceiling at this point.

    • S Moderation Douglas
      S Moderation Douglas 7 September, 2013, 21:08

      Who are you going to believe?

      http://trends.truliablog.com/2013/02/why-do-people-leave-california/

      More POOR people leaving than rich?

      And yet, according to BLS, more people are working today in California than last year. Fewer Californians are unemployed than last year. The reason the unemployment “rate” went up (slightly) is that the size of the labor force also increased in the last year. 

      “jobs” are not leaving, “people” are leaving ( poor people)

      Are these “part time” or “low wage” jobs being created? 

      Then, why is the per capita income steadily increasing since 2009, and increasing at a faster rate than the national average?

      Could it be that:

      The cup is at least half full?

      Reply this comment
    • S Moderation Douglas
      S Moderation Douglas 7 September, 2013, 21:21

      Sarchasm

      Reply this comment
  4. brunsk42
    brunsk42 4 September, 2013, 20:11

    I live in California (NOT FOR MUCH LONGER)the way they went about increasing taxes was extortion, either vote to raise taxes or school tuitions will go up.

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 4 September, 2013, 21:09

    Come on……call us….we have a fresh load in the yard of rental trucks and trailers…..we treat ya right. We offer Made in USA boxes and packing supplies too.

    Reply this comment
  6. Ted Steele, CEO
    Ted Steele, CEO 5 September, 2013, 06:43

    Somolia is nice too—NO taxes at all!!!

    Reply this comment
  7. us citizen
    us citizen 5 September, 2013, 13:51

    I see the repubs have answers and are getting out of Kalifornia, where as the dems can only make snarky remarks. Wonder what is going to happen to the dems when the money leaves and there is no one left to take care of them.

    Reply this comment
  8. stolson
    stolson 5 September, 2013, 13:56

    Ulysses Uhaul says: we treat ya right.
    BUDGET RENTAL IS BETTER.

    Reply this comment
  9. Mike
    Mike 5 September, 2013, 15:04

    Yeah and Somalia has fewer pirates then CA

    Reply this comment
  10. Wendy
    Wendy 5 September, 2013, 15:39

    We’re getting pretty tired of this in NV! Libs flee their high taxes, move to NV, and then proceed to vote for the same leftist government. It’s a myth that NV is a low-tax state. Dirty tricks and back-door revenue sources are ruining our state. We have been taken over by lib hypocrites.

    Reply this comment
  11. Sean Morham
    Sean Morham 5 September, 2013, 16:34

    100 percent inheritance tax on all deceased whos did not receive a gov t pension(Local, state or federal, or foreign). This would enable the state gov t to assist the undocumented. If the heirs don t like it move. No one said life is fair. What would Jesus do?

    Reply this comment
  12. us citizen
    us citizen 5 September, 2013, 17:47

    Really Sean, really! Jesus would say………..keep the money in your family……..you earned it, not the govt!

    Reply this comment
  13. Rex the Wonderdog!
    Rex the Wonderdog! 5 September, 2013, 22:46

    This is a great time for broad based tax increases to kick start the California economy.
    ==
    Can someone, ANYONE, send Sean to back to school so he can be educated 🙂

    Reply this comment
  14. skippingdog
    skippingdog 6 September, 2013, 10:55

    Every time Rex posts a comment, an angel cries and does a facepalm.

    Reply this comment
  15. The Ted Steele Conceptual Abstraction Unit
    The Ted Steele Conceptual Abstraction Unit 6 September, 2013, 15:18

    LMAO Skipper!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Reply this comment
  16. SeeSaw
    SeeSaw 8 September, 2013, 15:16

    For all of you who are moving to, or now living in Nevada, I couldn’t be happier for you!

    Reply this comment
  17. David N
    David N 12 September, 2013, 09:42

    My wife and I are both engineers and make good money. We left California in 2006 and moved to Texas. I figure we saved in the last seven years about $150,000 in after-tax income by doing so. Best financial moved we ever made. My community in Texas is about 50% from California and they are not community organizers. No, they are engineers, skilled tradesman, and accountants. Texas gets a lot of good talent from California. So, raise those taxes in California. It is good for Texas.

    Reply this comment
  18. Jack
    Jack 30 July, 2014, 16:11

    It ain’t just taxes that are driving us out of California, it’s the cost of everything! Housing, transportation, insurance, food, you name it, it’s way too expensive in CA. That’s why my family made the move NV and we couldn’t be happier. Forget California and their ridiculous bureaucracy, restrictive laws, high cost of living and unrelenting taxes.

    For those Californians who are also considering the plunge, here’s an excellent resource to get you started: http://www.brownblankfeld.com/home-buyers/relocating-to-southern-nevada/

    Reply this comment

Write a Comment

Your e-mail address will not be published.
Required fields are marked*


Tags assigned to this article:
Jerry BrownJohn SeilerNevadaProp. 30Taxes

Related Articles

Note on deleted posts

Feb. 6, 2013 By John Seiler, Managing Editor An imposter poster going by “Hermit of Livery” long has been banned

Contra Costa case a template for Prop. 26 abuse

In recent California history, small-government advocates have no more significant victory than the triumph of Proposition 26 in 2010. Here’s

Bay Area Newspaper Group goes trolling for outrage

March 20, 2013 By Chris Reed The publications that are part of the Bay Area Newspaper Group are giving big