A new study recently revealed that high earning Californians have been leaving the state for years. Starting in 2012, millionaires have been leaving California in droves. All signs point to the exodus continuing.
Who’s Leaving California?
In 2012, California voted to increase state income taxes on top earners. The measure increased the top income bracket by 8%, from 12.3% to 13.3%. That 13.3% is now the highest state income tax in the nation.
Those skeptical of high taxes on top earners have long argued against such measures. The argument is often that high earners will simply move elsewhere. Sure, it’s a drastic measure but millionaires an afford it, right?
Per research by Charles Varner, associate director of the Stanford Center on Poverty and Inequality, California lost an estimated 138 high-income individuals following the state tax increase.
For high income Californians, there was some relief in sight. albeit, brief. The increase was set to expire in 2019. However, in 2016 the increase was extended until 2030. Odds are good, it will be extended again in another ten years.
As a result, wealthy residents are leaving California. This has been reported extensively, and was observable if even anecdotally. However, the new research confirms what many have long suspected.
Those leaving California have taken up residence in Arizona, Texas, and elsewhere. As the cost of living continues to rise, it’s like more people will be leaving California in search of a better living situation.
If you’re thinking of leaving California, City vs City has you covered. Our cost of living app uses real, local data to determine the real cost of living in your chosen city. Input your current data and see what you pay now. Then, compare your costs with another city of your choosing.
As a result, you’ll see a side by side comparison and see how your cost of living would change if you moved.
You may not be paying millionaire taxes right now, but another city could change your cost of living for the better. If you’re thinking of moving, don’t make a move without downloading City vs City first.