California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Will New Tax Rules Cause California Exodus?
California politicians are concerned that the new federal tax bill that cuts off deductions for well-off Californians, combined with higher taxes, may lead to wealthy residents heading for the tax havens of Nevada, Texas or Florida. The Golden State relies heavily on the income taxes it collects from high earners.
The state’s wealthiest 1% pay 48% of its income tax, and the departure of even a few millionaires could mean a big hit to state general fund revenue.
When Gov. Jerry Brown unveiled his 2018-19 budget proposal he noted “People with higher incomes pay a lot more money, and some of them may be tempted to leave. This was an assault by the Republicans in Congress against California.”
California legislators are proposing bills designed to counter the new tax laws. One would let California residents write off state taxes on their federal returns as a charitable deduction. Trump administration officials say it won’t be approved by the IRS.
For comments, questions or concerns, please contact Dennis Kaiser


