It’s no secret that Californians are leaving the state in droves. Some are political refugees worn out by the one-party Democrat rule. Others are economic refugees, searching for lower taxes and a more palatable cost of living.
A new report by The Center Square provides details:
“The Internal Revenue Service recently released its latest taxpayer migration figures from tax years 2018 and 2019. They reflect migratory taxpayers who had filed in a different state or county between 2017 and 2018, of which 8 million did in that timespan.”
“California, the nation’s most-populous state, lost more tax filers and dependents on net than any other state.”
“Minus incoming filers, California shed a net 165,355 tax filers and dependents between the two tax years, representing a loss of $8.8 billion in net adjusted gross income.”
“From July 2019 to July 2020, the Census Bureau estimated 135,000 more people left the state than moved in.”
The California Legislative Analyst reported last year that for many years, more Californians have left for other states than move here. According to data from the American Community Survey, from 2007 to 2016, about 5 million people moved to California from other states, while about 6 million left California. On net, the state lost 1 million residents to domestic migration—about 2.5 percent of its total population.
Official U.S. Census figures were unveiled recently showing that California will lose one congressional seat and electoral vote due to a massive slowdown of population growth, the Globe reported in April.
Now we are starting to see outbound migration from California’s big cities to smaller cities and towns, and to the state’s rural counties – if they even choose to stay in California.
We know why California companies leave for other states: Chief Executive Magazine reports year after year that when CEOs across the country are surveyed, they name California as the worst state in the country in which to have to do business. California has the highest-in-the-nation taxes, one of the highest business tax climates, with the Tax Foundation ranking California at No. 49 – the second worst in the nation, ahead only of New Jersey.
The Center Square continues:
“Texas was the primary destination for California ex-pats, with 72,306 total exemptions leaving to go there. Neighboring Arizona saw 53,476 total filing exemptions come from California. The two states saw a gross income boost of $3.4 billion and $2.2 billion, respectively.”
California’s 13.3% income tax rate is the highest marginal tax rate in the nation. And when you add in up to 37% federal taxes, living in California is expensive right off the top, and especially now that we cannot deduct state taxes against the federal.
With the statewide lockdown still partially in place, with schools closed or partially open, and businesses closed for 15 months, add in the spike in violent crime across the state… expect to see more people reaching a tipping point and making the decision to move to another state.
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