Two-Tax Rise Tests Wealthy in California

[CG6468]

Two-Tax Rise Tests Wealthy in California

By ADAM NAGOURNEY | New York Times – 17 hours ago.. .
 

PALO ALTO, Calif. — It is getting awfully expensive to be a millionaire in California.

With the new year, big earners are confronting a 51.9 percent federal-state income tax hit on earnings over $1 million, the result of a confluence of new tax-the-rich levies imposed by California and Congress in the closing days of 2012. That is officially the highest in the nation. And at 13.3 percent, the top-tier California income tax is, in addition to being higher than any other state, the steepest it has been since World War II.

Though no one expects traffic jams at 30,000 feet as panicked millionaires make for the state line, the wealthy are once again grumbling about abandoning California for less punishing tax climates. Phil Mickelson, the golfer who collects purses in excess of $1 million, suggested that he might become the latest in a line of athletes and entertainment figures, among them Tiger Woods, who left California for states like Florida, which has no personal income tax.

The Republican governor of Texas, Rick Perry, firing a new shot in an old interstate war, began putting radio advertisements on the air in California this week summoning burdened businesses his way. “I have a message for California business: Come check out Texas,” Mr. Perry said.

Blood, it seems, is in the water.

 

 

Dem dere po' 'Fornians.....

[rich_t]

I can't imagine why anyone of wealth would willingly stay in that cesspool of a state.

[NHSparky]

I can't imagine why anyone of wealth would willingly stay in that cesspool of a state.

FIFY.  I asked my aunt.  She said it was the weather.  She was pissed off when I laughed.

[17 Oaks]

I lived out there for years, prob around 5 years or so...Just call me LUCKY, I lived in Ca and never spent a day there that I was NOT on the expense acct.  Much to love out there, mostly the beauty of the coast.  I have driven the Pac Coast Hwy from Seattle to San Diego up and down, same for I 5, its all beautiful, but I would NEVER consider living there out of my own pocket.

Several companies tried to move me out there but I turned them down, cost was staggering to live there.

[USA4ME]

I know some laugh but it is the weather.  My Dad lived in LA for about 2 years before going into the Navy in 1943, and he loved it.  He said you could be at the beach in no time, or you could drive an hour East and be snow skiing in the mountains.  You can plan six months in advance for an outing with family and friends in August and know already the weather will be perfect that day.  Never too hot nor too cool.  Of course there's plenty of activities to do and restaurants to go to.  I can see why a lot of people wanted to live there.  I like visiting and vacationing there, but that's about it.

.

[17 Oaks]

I know some laugh but it is the weather.  My Dad lived in LA for about 2 years before going into the Navy in 1943, and he loved it.  He said you could be at the beach in no time, or you could drive an hour East and be snow skiing in the mountains.  You can plan six months in advance for an outing with family and friends in August and know already the weather will be perfect that day.  Never too hot nor too cool.  Of course there's plenty of activities to do and restaurants to go to.  I can see why a lot of people wanted to live there.  I like visiting and vacationing there, but that's about it.

.

I must agree the weather is quite predicable out there.  But as someone who has lived fro LA to San Fran and a lot of places in between the weather is as different up and down the coast line as anyplace I have been in this world.  I would swear the coldest I have ever been was Carmel in the summertime.  The fog rolls in the temps PLUNGE, in the middle of the afternoon, every day.  Winters are warm...its all hinges off the ocean and how the Japanese trade winds are blowing.  I also lived in Seattle another great place.  If you ever have about 6 weeks vaca time to kill then Seattle is a good place to spend it.  BEAUTIFUL place, lots to see and do around there.  I enjoyed every day I lived there, but was sure happy to leave...

[RobJohnson]

I like the beauty of the state but I don't care for the ugliness that belongs to most of the people.

I could live in a town like Ventura and get a long just fine.

[NHSparky]

I like the beauty of the state but I don't care for the ugliness that belongs to most of the people.

I could live in a town like Ventura and get a long just fine.

Until you realized you had to commute to LA.  Trust me, I knew people who lived as far out as Temecula, Hesperia, or the other side of Redlands who did that commute every. Single. DAY.

On the road by 5:30 to get to Alhambra by 8.  Screw that.

And yeah, I figured out the three most important words to a Californian were, "Me, me, me."  Sickening.

[RobJohnson]

Until you realized you had to commute to LA.  Trust me, I knew people who lived as far out as Temecula, Hesperia, or the other side of Redlands who did that commute every. Single. DAY.

On the road by 5:30 to get to Alhambra by 8.  Screw that.

And yeah, I figured out the three most important words to a Californian were, "Me, me, me."  Sickening.

I would need a local job. The commute would suck. The LA traffic is a mother. I used to commute to Chicago at least once a month when living in Illinois, and I would take that drive over that mess in LA anytime. It could of just been I was not used to it, but a couple times I felt an anxiety attack in the works when I drove to Ventura and back from Nevada. 

Jet Blue only charges me $49 each way to Burbank, from there I hop on Amtrak. Works out well. I have a "friend" there.

I have a habit of talking to random strangers, and most everyone I spoke to were very nice in Ventura. I just think it's a pretty neat town. 

I have friends that are retired that own three homes in Hesperia. They rent one to their daughter. Well, she lives there, I doubt she pays them. They enjoy the visit, but they stay away from the big cities.

[LC EFA]

I can't imagine why anyone of wealth would willingly stay in that cesspool of a state.

You don't really think that they're silly enough to actually keep their wealth in the state (or even the country where possible) ?

[17 Oaks]

I would need a local job. The commute would suck. The LA traffic is a mother. I used to commute to Chicago at least once a month when living in Illinois, and I would take that drive over that mess in LA anytime. It could of just been I was not used to it, but a couple times I felt an anxiety attack in the works when I drove to Ventura and back from Nevada. 

Jet Blue only charges me $49 each way to Burbank, from there I hop on Amtrak. Works out well. I have a "friend" there.

I have a habit of talking to random strangers, and most everyone I spoke to were very nice in Ventura. I just think it's a pretty neat town. 

I have friends that are retired that own three homes in Hesperia. They rent one to their daughter. Well, she lives there, I doubt she pays them. They enjoy the visit, but they stay away from the big cities.

There is a way to help mitigate that traffic.  I was out there for 6 mo and we only had one car at the time.  So I went down to the tow rope your pay stub is your credit lot and bout a '67 Chevy II for $100 cash money, came with 5 spare tires (it needed them as the tires on there looked a chicken skin, and the spare were MayPops and it burnt more oil than gasoline.  But in 6 mo I managed to put almost 10k miles on that puppy.  It did not have a heater and you had to get in on the passenger side as the drivers door was tied on with coat hangers.  It was rough to say the least.

But out on that LA Freeway I was king of the road other cars avoided me like my car had Herpes Simplex #10 and AIDS too.  It was like driving with a Star Trek shield around my car.  It was almost funny to see cars get away from me. 

When I left I sold the car for $500 bucks and a ride to the LA Airport...Body was rust free, its was a '67 CHevy II, 2 door post and the guy was gonna restore it.

[NHSparky]

You don't really think that they're silly enough to actually keep their wealth in the state (or even the country where possible) ?

In CA?  Yes, they really are that silly.

And for the most part, they were right.  Only now do the "rich" care enough to start leaving.  The middle class has been leaving in droves for decades now.  Pretty soon it's going to be a few has-been celebritards supporting 40 million illegals/welfare queens.

[RobJohnson]

There is a way to help mitigate that traffic.  I was out there for 6 mo and we only had one car at the time.  So I went down to the tow rope your pay stub is your credit lot and bout a '67 Chevy II for $100 cash money, came with 5 spare tires (it needed them as the tires on there looked a chicken skin, and the spare were MayPops and it burnt more oil than gasoline.  But in 6 mo I managed to put almost 10k miles on that puppy.  It did not have a heater and you had to get in on the passenger side as the drivers door was tied on with coat hangers.  It was rough to say the least.

But out on that LA Freeway I was king of the road other cars avoided me like my car had Herpes Simplex #10 and AIDS too.  It was like driving with a Star Trek shield around my car.  It was almost funny to see cars get away from me. 

When I left I sold the car for $500 bucks and a ride to the LA Airport...Body was rust free, its was a '67 CHevy II, 2 door post and the guy was gonna restore it.

Yeah, the bastards don't like you to change lanes. I do get kinda brave. I would be much braver in an older car that I did not mind if they bumped me. 

[Dori]

I'm third generation Californian.  It is the weather and easy access to the coast, desert, mountains that mostly keeps me here.  Also, the fact that my home is paid for and my property taxes and utilities are a lot cheaper than in some states like Texas.

There are a lot more conservatives here than you might think, and we hate what the liberal wackos are doing to the state.

[Celtic Rose]

I'm third generation Californian.  It is the weather and easy access to the coast, desert, mountains that mostly keeps me here.  Also, the fact that my home is paid for and my property taxes and utilities are a lot cheaper than in some states like Texas.

There are a lot more conservatives here than you might think, and we hate what the liberal wackos are doing to the state.

I was a 2nd generation Californian, and I've moved up the coast to Washington.  I'm renting a two-bedroom duplex in a nice little town for less than my friends are paying to one bedroom apartments in California (San Jose area) with a job that pays well, no state income tax, and sales tax that is comparable.  I can see the Puget Sound from my back yard, and I am surrounded by trees.  Plus, my cousin has a friend with a gun to sell me, and another friend with a shooting range on their property.   The lack of sunshine is a bit sad, but I still go outside plenty. 

[Dori]

I was a 2nd generation Californian, and I've moved up the coast to Washington.  I'm renting a two-bedroom duplex in a nice little town for less than my friends are paying to one bedroom apartments in California (San Jose area) with a job that pays well, no state income tax, and sales tax that is comparable.  I can see the Puget Sound from my back yard, and I am surrounded by trees.  Plus, my cousin has a friend with a gun to sell me, and another friend with a shooting range on their property.   The lack of sunshine is a bit sad, but I still go outside plenty. 

I haven't been as far north as Washington yet.  Gotta do that.

[RobJohnson]

I'm third generation Californian.  It is the weather and easy access to the coast, desert, mountains that mostly keeps me here.  Also, the fact that my home is paid for and my property taxes and utilities are a lot cheaper than in some states like Texas.

There are a lot more conservatives here than you might think, and we hate what the liberal wackos are doing to the state.

I know a few good families in California.

The mountains that divide California and Nevada are pretty much in my back yard. But of course, Shoshone, CA and Death Valley, CA have less traffic then LA..... I love to go there to relax and take in God's creation.

[17 Oaks]

I know a few good families in California.

The mountains that divide California and Nevada are pretty much in my back yard. But of course, Shoshone, CA and Death Valley, CA have less traffic then LA..... I love to go there to relax and take in God's creation.

Spent mucho time in Death Valley area.  Love going there...you know Manson lived there, his place was burned down a few years back.  I was leading a trail run and we went over there that eve, before dark, so it had to happen shortly after we left, sad what some folks do...(I know it was not us, we built no fires, no one in my group smoked, we just looked around and took some pics and left)

[RobJohnson]

Spent mucho time in Death Valley area.  Love going there...you know Manson lived there, his place was burned down a few years back.  I was leading a trail run and we went over there that eve, before dark, so it had to happen shortly after we left, sad what some folks do...(I know it was not us, we built no fires, no one in my group smoked, we just looked around and took some pics and left)

It's an area hard to explain to people unless they have seen it.

I'm glad you enjoy that area.  I did not know that Manson lived there.

[17 Oaks]

It's an area hard to explain to people unless they have seen it.

I'm glad you enjoy that area.  I did not know that Manson lived there.

Yep, here is a pic of his chair he sat in the was on a hill above the ranch house and a pic of the truck he drove.  These pics were taken not more than a few hours before the place was burned down by vandals.  It was the old Barker Ranch.  Don't think Charlie owned anything, he was just squatting there is my guess...

[RobJohnson]

Great pictures!!!!!!!!!

[inxile]

I think the issue is that the Federal Government taxes earned income a lot higher than it taxes wealth.  Which in this respect, wealth and a high in  Uncle Sam wants you to invest in growth opportunities (lower capital gains tax) than to just horde all of your cash for the year.   

While I like Phil Mickelson, he needs a new accountant/financial advisor ASAP. 

[docstew]

I think the issue is that the Federal Government taxes earned income a lot higher than it taxes wealth.  Which in this respect, wealth and a high in  Uncle Sam wants you to invest in growth opportunities (lower capital gains tax) than to just horde all of your cash for the year.   

While I like Phil Mickelson, he needs a new accountant/financial advisor ASAP. 

No, what Lefty needs is a new state of residence, like FL or TX, that won't take 20%+ of his income for the privilege of living there.