“California is doing just fine” for billionaires, but economic stagnation and ridiculously high taxes are shoving out the middle class

Journalist Kerry Jackson uses Census Bureau data to pinpoint why Californians are moving to other states. The state’s exorbitant taxes, low job growth, and poor business climate can only retain the wealthiest populations. Billionaires pervade California and likely won’t leave—but the middle class has no choice.

Recent Census Bureau data tell a story that surprises no one who keeps up with current events in California: The state is losing residents like few others. According to economist Mark J. Perry, only four other states – New York, Illinois, New Jersey, Louisiana – had a greater net outflow in 2019.

Here’s a quick California-centric overview:
Only four states in the outbound category have a higher state-local tax burden as a percentage of income than California’s. This state has the highest individual income tax rate (at 13.3%, no one is even close) and third-highest corporate tax rate (8.84%).

Even though most Californians live in temperate zones, only Connecticut has higher electricity costs, and the difference isn’t worth debating – 18.47 cents per kilowatt hour compared to 18.46 cents).

Homes are by far more expensive in California, with the 2020 median price at $586,659. Massachusetts is next at $457,192.

Only Louisiana and New Mexico have higher 2019 jobless rates than California’s 4.1%.

At 1.5%, the rate of job growth in California is second in terms of success only to New Mexico’s 1.6%, but it nevertheless lags every top 10 inbound state in job growth but Oklahoma, which has a rate of 0.8%.

The average for the 10 inbound states, nine of which are right-to-work states, is 2.1%.

This article originally appeared in Fox & Hounds Daily. Read the whole thing here.

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