California taxes trigger mass exodus of wealthy: Charles Payne


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Payne: New report shows 'egregious' California taxes continue to drive out big earners

California's tax plan is "so egregious" that residents of every socioeconomic background are leaving the state, host of Fox Business Network's Charles Payne said Wednesday.
California Democrats have raised taxes on high-income families again and again. While the left claims the measure doesn't impact taxpayer migration or hurt state tax revenue, a new study conducted at Stanford University finds the opposite.

The report reveals a 2012 income tax increase drove away many high earners. As a result, the state only netted about half the revenue gains it expected. The increase in 2012 jumped from 10.3 percent to 13.3 percent and the measured departure rate for high-income earners rose from 1.5 percent to 2.125 percent.

Appearing on "Fox & Friends" with hosts Steve Doocy, Ainsley Earhardt and Brian Kilmeade, the "Making Money" host said the results of the finding seemed obvious.

"I think the most important thing here is when they cobble these things together, and they say 'Hey, this is what's going to happen; this is how much we're going to make from it.' Those are called counterfactuals. You don't know until you actually do it," he explained.
"I think the more important part about this whole thing [is] how much less even the top earners reported in income."
Payne told the hosts that the "bifurcation between wealthy and poor in California is mind-boggling."

"It's so amazing when I hear Democrats talk about income inequality where every place that they've had a chance to dictate tax policy has the worst, the absolute worst, divide between super-rich and super-poor," he stated. "So, if you're not getting the money you were supposed to get from these grand schemes, you go lower and lower...and soon the super-rich become $250,000, $100,000, $75,000 [earners]..."
"So, not only did a massive amount of people flee the state, those wealthy folks that had the wherewithal to do it, paid themselves less money. You talk about an unmitigated disaster...," said Payne.
"What about Rush Limbaugh leaving New York?" Kilmeade joked. "We still haven't recovered."

Tall Timbers

Imperfect but forgiven
I'll be visiting SoCal in a couple of weeks. I have two brothers living there, one in Camarillo and the other in Chula Vista. The one in Camarillo is wealthy and has many business interests. I think it would be hard for him to leave but he has so much that tax policy may never be the driving force in where he lives or locates his businesses. I wonder though. I wouldn't want to be fattening the coffers of a liberal state like California. My other brother in Chula Vista is retired. Guess I'll have to ask him why he hasn't considered leaving the state. His pension is a California state pension so maybe there's some strings attached there...


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Even Sports figures have left CA over the taxes. The NBA doesn't seem to have a problem yet, but the NFL and MLB both have issues there. I've read articles where teams like the Rams and Chargers have had to pay up to 15% more for a player to play for them simply because of the taxes. The owner of the Raiders said that was his biggest reason for leaving Oakland. It was too difficult to get the better players to play in CA. They all want to be paid more to make up for the taxes.

There was an interesting article on Insurance Journal about the MAJOR problem states have with pensions for their employees. CA was naturally one of the top. It's only a matter of time before current and former State employees no longer have a pension. Only one state in the entire country is funded at 100%. The Liberal states, CA, NY, IL and some others are so poorly funded their employees are going to find themselves without a retirement in the next 10-15 years. None at all. It's because the states keep borrowing money from the pension plans and using it on other things. Sickening to know someone could be a State employee for 40 years, but if their retirement is around 2030, they may not ever see a single dime.


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They never learn!
Or do they? Its so absurd that at some point you have to ask yourself is this maybe on purpose. I think it is. I believe these Progressives are simply working out their plan of creating a huge divide between the elite and the rest of society. It needs to be that way for a fully Marxist/Socialist model for society. I use to think it was simply because they were nuts. But no, they know exactly what they are doing. Its why they don't ever change because they are getting the desired results from their efforts.


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The same thing is happening in other high tax states. The state of New York and Illinois are both losing thousands of residents each year. Florida gets a bunch of New Yorkers each year.
There is a spiral upward of taxes. More taxes mean more spending and this feeds on itself. Higher and higher each year until people have had enough.
And more taxes are the answer every prog/lib politician espouses.