The voters of California have decided to hike income taxes to levels that are unprecedented anywhere in the nation.
Here’s the gist:
Those who make over $250,000 will pay the highest taxes in the country.
If you make over a million dollars — you will pay an even higher surcharge.
Oh, by the way, this tax is retroactive to 2012… yes, California will be retroactively taking away money that has already been earned.
Wealthy People Have A Target On Their Backs
It’s my opinion that the politicians who run California’s government view business owners and wealthy people as their piggy bank.
Hence, this obscene tax on the higher earners.
From PandoDaily: An oppressive state income tax will not be enough to drive some people out. But it is naive to think that the thousands of young millionaires who are about to get hit by this retroactive tax will not think twice about it when they talk to their financial planners.
In the end, nobody knows for certain how this tax will impact individual decisions. These types of things are incredibly anecdotal in terms of the evidence on either side. Politicians will provide figures to suggest that income tax does not cause exodus, but these taxes are unprecedented, and coming at a time when people are less rooted to California than ever before.
Californians Moving to Nevada
I can tell you, it is already happening:
In the 3 days following the November 6th elections, we—Nevada Luxury Homes—have received a total of 27 phone calls from Californians looking to escape the coming tax burden and move to Reno…
In Nevada we don’t believe anyone owes us a cent—what’s yours is yours. We’re not envious of your success.
Real Estate In Reno Nevada
I have a couple friends who recently purchased real estate in The San Francisco Peninsula.
In both cases, the final sales price was north of $1.2 million.
Now, as a Reno real estate agent I list $1.2 million dollar homes on a regular basis.
BUT, what you get for $1 million in the Bay Area — and what you get for $1 million in Reno Nevada are VERY different.
The Truth About Nevada Real Estate
I understand comparing a house in the Peninsula to a house is Reno is “apples-to-oranges”. But, a duck is a duck… and a tear-down in the Peninsula is a mansion In Montreux!
In other words, a million dollar house in Reno, Nevada is vastly different than a million dollar house in the Bay Area.
When Are You Moving To Reno?
No state income tax, more house for your money, less traffic, skiing 20 minutes away, Jack Nicklaus Signature Golf, clear-blue skies… I could go on…
… There are many reasons to move to Reno—not just to escape California’s brutal taxes.