Bailing On California Due To High State Taxes
Many top-earning residents in California are ready to leave for good due to the excessive taxes they are required to pay. From winery owners in Napa Valley to popular sports figures, high-income residents who have been loyal to “The Golden State” are simply fed up.
Golfer Phil Mickelson has openly voiced his feelings about the issue and did not hesitate to disclose that he has considered leaving California, although he later regretted being so vocal. Other top earners are also speaking out about their plans to leave the state, and these residents have plenty of options that will be much easier on their pockets.
The southern state of Texas is a very attractive option for many high-income residents of California. The income-tax rate in this state is zero, which is a huge difference from the excessively high 13.3% tax rate that the top-earning residents in California are required to pay.
Nevada is another option that many California residents are considering. According to Nevada accountant George Ashley, his office has recently received over one-hundred inquiries from residents of California who want to know the tax advantages of relocating from California to Nevada.
This increase in state taxes will have the greatest impact on individuals or families earning $250,000 yearly. They are already required to pay 62% of the states income tax, and this increase will lead to them paying much more, which is why many residents want to bail.
Many blame Proposition 30 for this dramatic change in California’s tax laws, and top earners of the state simply believe that increasing their taxes is simply unfair. Many residents have already bailed, according to Fox News. Although those being interviewed chose to remain anonymous, they were very vocal about their frustration with paying excessively high taxes.
According to tax experts, many more residents are likely to leave the state by the year 2014. Some are still trying to figure out how to relocate legally without completely cutting ties with California State.