California Taxes Chase Away Wealth

Here's a good story from San Fran. California's taxes keep rising, and the wealthy have had enough and are establishing residence in lower tax states. What's the key lesson? Well, liberals in America often want more social programs funded by increased taxes on the rich. Even if you raise taxes across the board, liberals are upset that the rich weren't taxed at a higher rate. It's class envy, and incredibly stupid economics. Why? Because by and large people who have built wealth aren't that stupid. Higher taxes will drive them away, especially if they continue to see more and more freebies given out on their dime.

This story is a great example, and as taxes go up in the nation, we'll see more and more wealthy finding ways to shield their assets outside of the US. So, those liberals that figured they'd pay for socialized medicine, or free college for all, by taxing the rich, aren't going to get anything but put the country in a worse state. It's simple economics. Intelligent people will do what is in the best interest. Even highly charitable ones know that they can't contribute to the cause they care about if Uncle Sam is taking it all and wasting 50% on bureaucracy.

Millionaires cashing out of Bay Area - San Francisco Business Times:: "'You can still make a lot of money in California. The problem is, then you have to pay taxes on that money,' said Kennedy, who recently helped a California client with annual income of about $1 million save $96,000 annually by making their home in Jackson Hole, Wyo., their primary residence.
'Effectively, you have the state of California subsidizing their relocation through the tax savings,' Kennedy said. 'You can still tap into California's resources -- which includes a large, educated population -- while extricating yourself from the California tax system.'"

fifth installment...