Are Californians Really Leaving for More Affordable States?

We are told by the Sacramento Democrats that California is doing great economically.  While it looks like we are doing well, the facts tell a different story.

““Money—and people—moved from high-tax states to low-tax ones. And the tax that seemed to matter the most? The personal income tax. The states with no income taxes gained the greatest wealth, while the states with the highest income taxes lost the most. Why does this matter? Because the robust presence of working wealth is the leading indicator of economic health.”

According to “How Money Walks,” California lost $58.63 billion in annual adjusted gross income.

“About 130,000 more residents left California for other states last year than came here,” the Sacramento Bee reported. “California has seen more than 15 consecutive years of net resident losses to other states.”

A tax here, a tax there, an environmental report that does not make sense, the ability of government to make living here miserable and you are beginning to see the results.  Bad policies are being enacted by the Sacramento Democrats like a kid in a candy shop.  Instead of getting a bellyache—the adults are leaving the State.

Are Californians Really Leaving for More Affordable States?

Senators disagree over the facts: ‘It’s a fiction about all of the people leaving California.’ Or is it?

By Katy Grimes, California Globe,  5/30/19 

During the Senate debate over Sen. Maria Elena Durazo’s rent control and tenant unionizing bill Monday, Sen. Jeff Stone (R-Temecula) delivered a floor speech about how SB 529 was just another bill squeezing California business owners and landlords, and forcing them out of the state. Through more rent control and anti-landlord regulations, “They are going to go where they can to make a profit,” he said. “I know it’s a dirty word to many in the Senate… profit.”

“It’s a fiction about all of the people leaving California”

“So many entrepreneurs have moved out of the state,” Stone said. “This is just another reason for landlords big and small to say ‘enough is enough… let us manage our own properties.’”

Sen. Hannah Beth Jackson (D-Santa Barbara) described herself, as a “reluctant landlord,” and said, “I am frankly tired of hearing how people in the state of California are leaving.”  Jackson said when people are stuck in legendary traffic on the 405 in Los Angeles, or the 101 in Santa Barbara County, “people aren’t leaving the state. They are going from place to place.”

She warned that the bill capping rents and allowing tenants to organize, was necessary because “there are far too few units,” while Stone warned that other states are attracting California landlords and entrepreneurs because of bills like SB 529. He said apartment owners and builders are looking to divest from California because of the onerous building process. “Other states take weeks, not months.”

“It’s a fiction we keep hearing about all of these people leaving California,” Jackson said. “We’ve still got more than enough to take care of the economy and keep it going in a robust fashion.”

Not So Fast

Sen. Mike Morrell (R-Rancho Cucamonga), who owns a property management business, said he and his wife know many property owners who “are fleeing the state. They are going for states that have a lot more economic freedom, and not constraints, which makes it difficult to be able to compete.”

“They are going for states that have a lot more economic freedom”

Morrell said he opposed SB 529 because he is “a believer in property rights.” Morrell said he was given a book by the Hoover Institution called “How Money Walks: How $2 Trillion Moved Between the States, and Why It Matters.”

“Between 1995 and 2010, millions of Americans moved between the states, taking with them over $2 trillion in adjusted gross incomes,” author Travis Brown says. “Two trillion dollars is equivalent to the GDP of California, the ninth largest in the world. It’s a lot of money. Some states, like Florida, saw tremendous gains ($86.4 billion), while others, like New York, experienced massive losses ($58.6 billion). People moved, and they took their working wealth with them.”

“Money—and people—moved from high-tax states to low-tax ones. And the tax that seemed to matter the most? The personal income tax. The states with no income taxes gained the greatest wealth, while the states with the highest income taxes lost the most. Why does this matter? Because the robust presence of working wealth is the leading indicator of economic health.”

According to “How Money Walks,” California lost $58.63 billion in annual adjusted gross income.

“About 130,000 more residents left California for other states last year than came here,” the Sacramento Bee reported. “California has seen more than 15 consecutive years of net resident losses to other states.”

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.