re: As top earners flee, California sees 25% drop in income tax revenue

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Hmmm..... 5th repeat 5th largest economy in the world. Seems they be doing alright.

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You sure about that?

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California Faces a $68 Billion Deficit. Largely as a result of a severe revenue decline in 2022-23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process.

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Legislature Will Have Fewer Options to Address Multiyear Deficits in the Coming Years. Given the state faces a serious budget problem, using general purpose reserves this year is merited. That said, we suggest the Legislature exercise some caution when deploying tools like reserves and cost shifts. The state’s reserves are unlikely to be sufficient to cover the state’s multiyear deficits—which average $30 billion per year under our estimates. These deficits likely necessitate ongoing spending reductions, revenue increases, or both. As a result, preserving a substantial portion—potentially up to half—of reserves would provide a helpful cushion in light of the anticipated shortfalls that lie ahead.

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And are we just gonna ignore the exodus of companies and top earners/producers?

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SACRAMENTO — It's an unprecedented exodus. More California company headquarters are relocating out-of-state than ever before, according to a new report published by the Hoover Institution.

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Why?
The Stanford researchers found that the regulatory climate and taxes were big reasons companies chose to make the leap east. Of all U.S. states, CEOs rated California’s tax and regulation policies the worst, including a total of 518 state agencies, boards and commissions.

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California currently doesn't tax lottery winnings.

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Well, that just kills my conspiracy theory. Downvote!

You ignore the fact that because of all the natural disasters in the state the past year, citizens were able to delay filing their federal and state taxes so that 25% figure does not mean 25% of its wealthy citizens moved out of state.

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The top earners aren’t “fleeing”, they’re simply buying second homes in other states where there’s no income tax and listing them as their primary residence so they don’t have to pay all the taxes on their CA homes.

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I don't think it's that easy.

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High taxes getting you down? California’s 13.3% rate is the same on ordinary income and capital gain, and there have been several proposals to increase the top 13.3% rate as high as 16.8%. Moving sounds easy, but if you aren’t careful how you do it, you could end up saying goodbye California taxes, and hello to a residency audit. California's tough Franchise Tax Board (FTB) monitors the line between residents and non-residents, and can probe how and when you left.

It pays to know what you are up against, and the burden is on you to show you are not a Californian. If you are in California for more than nine months, you are presumed to be a resident, and more than six months can often cause problems too. If high income tax rates are not scary enough, California also proposed a wealth tax, although so far that did not pass.

Even without any of these proposed tax hikes, paying 13.3% in non-deductible state taxes (after the IRS $10,000 cap) is painful. You can leave for Nevada, Texas, Washington or other no-tax states, but if you aren’t careful, you could end up being asked to keep paying California taxes. In some cases, California can assess taxes no matter where you live.

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It's legit scary how aggressively that state looks for ways to shakedown its residents.

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Leftist financial policies are so short-sighted. It's like they fail to do the most elementary analysis of potential outcomes

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I would argue that (at the government level) they are getting EXACTLY the outcomes they want. The rest are just useful idiots.

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Normal folks should move to California and vote to turn it normal

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Would have been a great plan 10-15 years ago. It’s too late now.

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Hmmm..... 5th repeat 5th largest economy in the world. Seems they be doing alright

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California lost a House seat in 2021 (first time in its entire 170 year existence) and they're projected to lose 5 by 2030 because so many people are leaving

But they're looking so good!!!