California is losing tax revenue hand over fist. From CNBC:
Tesla CEO Elon Musk has told friends and associates he plans to move to Texas
Tesla CEO Elon Musk put his California houses on the market this year while he was sparring with state lawmakers over Covid-19 restrictions. He’s simultaneously been expanding operations in Texas and cozying up to Republican Gov. Greg Abbott.
Now, several of his close friends and associates say that Musk has told them he’s planning to move to the Lone Star State. The people with knowledge of his plans asked not to be named because their conversations were private.
California has the highest state income tax in the nation. Texas has no income tax at all. Tesla is not the first.
From FOX Business:
Hewlett Packard leaves California for Texas in headquarters jump
Hewlett Packard Enterprise is kissing California goodbye as it prepares to move its headquarters to Houston, Texas.
And this report from Business Journals:
Bay Area exodus accelerates at year-end as some seek to avoid tax hikes in 2021
The Bay Area exodus, which accelerated amid Covid, appears to be gaining more steam in the final months of 2020. Moving out of the state by year-end could help those leaving avoid being hit by a California income tax increase next year that might be retroactive to the start of 2021.
“I’m seeing an acceleration of clients — not to mention friends and neighbors — leaving California,” Paul Bleeg, a partner with accounting firm EisnerAmper in San Francisco, told me Tuesday. “The destinations vary: Montana, Nevada, Tennessee, Florida, Texas, Utah and elsewhere.”
The ruling class is unaware of the basic facts - raising taxes results in less revenue. Art Laffer had this down to a science 46 years ago. Basic economic fact.
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