The numbers tell the story. Researchers from the PPIC, the Public Policy Institute of California, examined Census Bureau datato answer a question of immense concern to state legislators. They wanted to find outif the rich are fleeing the state due to high taxes.
Answer? Some rich are leaving California. But the poor are leaving at a much higher rate. The study was conducted before new tax increases were imposed last February.
Taxpayers leaving California outpace those crazy enough to move in, knowing they’re going to get whacked. Those who leave are landing in friendlier states — like Texas, Nevada, and Florida– with no personal income tax.
Legislators are worried, because the top 1 percent of California’s taxpayers– “the rich” –pay half of all state income taxes, and generate a quarter of state revenues. As in other blue states, if only a few thousand rich Californians decided to leave,the entire house of cards would collapse.
Given all you’ve just heard, you would think the report would warn against any further tax hikes. You would be wrong. The data supports the view that raising California’s marginal tax rates even higherwould have little effect:the rich would stay– and pay.
It almost defies logic…until you realize these are rich liberals we’re talking about. And, be they rich liberals or poor liberals, logic never enters the equation.
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