Study: Dozens of millionaires fled California after 2012 tax increase

money bagCalifornia lost a very small but statistically significant percentage of high-income residents after voters approved Proposition 30 — the 2012 ballot measure that raised the top state income tax rate to 13.3 percent, the highest in the nation — according to a new working paper from three researchers.

The state lost an estimated 138 high-income individuals, or about 0.04 percent of the roughly 312,000 people subject to the tax increase, said co-author Charles Varner, associate director of the Stanford Center on Poverty and Inequality.

The research comes at a time when more Californians are at least threatening to leave the state because of high taxes and housing costs. The rumblings have escalated since the federal tax law that passed in December capped the previously unlimited federal itemized deduction for state and local taxes at $10,000.

“It remains to be seen what kind of effect (that change) might have, and we will be looking at that as the numbers come in,” said Varner, adding that he expects any effect on migration to be small. …

Click here to read the full article from the San Francisco Chronicle