California voters have approved tax increases of $6 billion a year.
They will tax the rich.
The rich will leave.
I left in 1975. Art Laffer left in 2006. We had the samne reasons: too many taxes, too much business regulation.
I figured it out earlier.
Here is a recent report.
In the wake of the November 6 elections, voters have approved a number of contentious state initiatives, including a $6-billion-a-year bundle of tax increases sponsored by California Governor Jerry Brown. Proposition 30, a focal point of Brown’s administration, would increase the sales tax by 0.25 cent for the next four years, while raising income taxes on those earning more than $250,000 for the next seven years.
Specifically, the measure installs three new personal income tax brackets for high-income residents, and the wealthiest one percent — which includes those earning at least $533,000 a year in income — will account for nearly 80 percent of the tax hike. Those high-income earners will see their income taxes rise by 1.1 percent, while the bottom four-fifths of the state’s earners will see a tax increase of between 0.1 percent and 0.2 percent. . . .
California, or as the Pacific Research Institute refers to it as “Taxifornia,” harbors the highest personal income taxes in the country, and has higher sales taxes than all but four other states. Thanks to its daunting business environment, businesses and investors are migrating to other states in search of lower taxes and less regulations. Breitbart.com reported on this trend in an article earlier this year:
Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs. . . .
According to Vranich, California has the most hostile business climate in the U.S., and Los Angeles is the worst city to launch a new business. Yet Governor Brown and more than half of the state’s voters have just boosted the burden on California businesses and investors, encouraging more of them to flee to states with greener political pastures.