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California Is Taxing Itself to Death
Reason magazine
|November 2023
FOR DECADES, CALIFORNIA has been a desirable destination for Americans lured by the promise of riches, stardom, or at least a good place to surf.
That dream is over for an estimated 343,000 Californians who fled the state between July 2021 and July 2022, according to data from the Census Bureau. That marks the third consecutive year that California has seen a net decline in population.
Those heading out of state tend to be wealthier residents, and their exit threatens to blow a hole in the state’s finances. California lost about $343 million in tax revenue during 2021 due to out-migration, according to a study from the online real estate firm MyEListing.com. The company says “California’s high personal income tax rates seem discouraging for many high-wealth individuals.”
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