The state of California is beginning to see millionaires, many of whom pay most of the taxes, leave.
After raising taxes from 8 percent to 13.3 percent, effectively making it the nation’s highest state income tax rate, many high-income individuals have left The Golden State, says Charles Varner, associate director of the Stanford Center on Poverty and Inequality, in an interview with Forbes.
Proposition 30, supported by Governor Jerry Brown, also hiked tax rates on incomes of $300,000 to $500,000 by two percentage points and boosted the tax rate of incomes of more than $500,000 by three percent.
The measure was approved by voters in 2012, and they also voted in 2016 to extend the tax increases to 2030.
The same trends have been seen in Connecticut, Illinois, New Jersey, and Maryland. When you raise taxes on the wealthiest of citizens, they inevitably leave to a low-tax state.
Leave a Comment