California loses 300,355 taxpayers and $ 12 billion in gross revenue to other states since 2017
It’s no secret that Californians are leaving the state in droves. Some are political refugees exhausted by the one-party Democratic regime. Others are economic refugees, seeking lower taxes and a more acceptable cost of living.
A new report by The Center Square provides details:
The Internal Revenue Service recently released its latest taxpayer migration figures for the 2018 and 2019 tax years. They reflect migrant taxpayers who filed in another state or county between 2017 and 2018, including 8 million did so during this period. “
“California, the most populous state in the country, has lost more filers and dependents on the net than any other state.”
“Minus inbound filers, California lost 165,355 net filers and dependents between the two tax years, representing a loss of $ 8.8 billion in adjusted gross net income.”
âFrom July 2019 to July 2020, the Census Bureau estimated that 135,000 more people left the state than they moved in. “
California legislative analyst reported last year that for many years more Californians left for other states than moving here. According to data from the American community survey, from 2007 to 2016, approximately 5 million people moved to California from other states, while approximately 6 million left California. On the net, the state has lost 1 million inhabitants due to internal migration, or about 2.5% of its total population.
Official U.S. Census figures were released recently, showing California will lose a seat in Congress and an electoral vote due to a massive slowdown in population growth, The Globe reported in April.
Now we’re starting to see an out-migration from major cities in California to smaller towns and villages, and to the state’s rural counties – if they even choose to stay in California.
We know why California companies go to other states: Chief Executive magazine reports year after year that when CEOs across the country are polled, they name California as the worst state in the country in which to do business. California has the highest taxes in the country, one of the highest tax climates for businesses, with the Tax Foundation ranking California 49th – the second worst in the country, ahead of New Jersey.
The Place du Center continues:
âTexas was the number one destination for Californian expats, with 72,306 total exemptions leaving to get there. Neighboring Arizona saw a total of 53,476 filing exemptions from California. The two states saw their gross revenues increase by $ 3.4 billion and $ 2.2 billion, respectively. “
California’s income tax rate of 13.3% is the highest marginal tax rate in the country. And when you add up to 37% federal taxes, living in California is expensive right off the bat, and especially now that we can’t deduct state taxes from the federal government.
With the statewide lockdown still partially in place, with schools closed or partially open, and businesses closed for 15 months, add to the spike in violent crime across the state … expect to see more people reach a tipping point and make the decision to move to another state.