Monday, March 11, 2019

Lure of the Golden State

It turns out that high taxes are not driving the rich out of California.

“Substantially more rich people are moving into California than moving out,” says Cristobal Young, a Cornell University sociology professor. He teamed with others at Stanford University’s Center on Poverty and Inequality to write a research paper on “Millionaire Migration in California.”
Hmmm.

Nor, although the LATimes story does not say so, are businesses fleeing California. 

This will surprise only Arthur Laffer (who I saw on teevee today claiming the Laffer Curve really does work; no, really, and big tax cuts reduce the deficit. I was surprised to find out he isn't in a home for the mentally-impaired.)

It must puzzle rightwingers that one result of Brexit (failed or unfailed) is that businesses are reluctantly leaving London. If you believe rightwing voodoo economics, they should all have left long ago.

2 comments:

  1. Yay high Taxes! Yay rich people!

    That net million poor and middle class people who moved away in the last ten or so years because they can't afford to live in California? Yay to that too? The rich sure do like that - get rid of the dregs to Texas or whatever and only keep highly educated people around.

    But you (and the articles) are partly confusing "rich" with "high income." A millionaire doesn't necessarily pay high taxes in California if he or she is retired and because of its climate, California (especially southern California) is a very pleasant place to retire. After all, California does NOT have wealth taxes (except for real estate and that's pretty limited).

    And the very rich know how to protect their wealth and income so of course they have no reason to avoid California.

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  2. You anticipate a post from me. Short title: capital levies.

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