There are no typographical errors in the headline of this post.
A couple of recent news stories out of California bring home that it’s time for anyone residing in the Golden Bronze State to seriously consider moving. First, the “Train to Nowhere,” a past winner of the Tax Offender of the Year award, will likely never get completed. The price tag of this alleged high speed rail project is now $231 Billion! Back in 2008, the price tag (when the ballot measure authorizing the project passed) was just $33 Billion. That’s a 700% increase!
My personal view is this project will never get completed. But if it does, California taxpayers are going to pay for it–and with a $35 Billion budget deficit there’s only one way taxes can go as far as Democratic politicians are concerned (up). California already ranks near the bottom of states on tax policy, and things are likely to get worse.
Second, the so-called California “Billionaire” (Wealth) Tax appears to have made the November ballot. The measure has already cost the state–many billionaires have voted with their feet, establishing residences in other states–and Chamath Palihapitya (a venture capitalist) noted that if the measure passes in November the state legislature could covert the tax to a tax on everyone.
(There are a couple of other certainties if the measure passes. First, it will be tied up in the courts for some time, as whether or not it is constitutional is iffy. The US Constitution authorizes income taxes, but it might or might not allow a wealth tax. This measure would likely go to the Supreme Court.)
If you are a California resident, and your job and family situation allow you to consider relocation, I think it’s time for you to do so.
