California boasts some of the world’s finest golf courses, but apparently that’s not enough to keep the pros happy. Phil Mickelson, winner of multiple championships, hinted at his intention to ditch the formerly Golden State because of its high-tax policies. The golfer’s comments prompted fellow champion Tiger Woods to say that taxes were what drove him out of California in the 1990s. The “sock it to the rich” policies ultimately result in lower tax revenues, bigger deficits and a declining standard of living as the wealthy pack their bags for more welcoming places.
California does have stunning landscapes, great weather, top universities, fabulous beaches and a lot more going for it. Because of this, bureaucrats in Sacramento believe they can charge residents a premium for the privilege of living there. Gov. Jerry Brown recently raised the top levy to 13.3 percent on those earning a million dollars a year, and he substantially boosted rates for six-figure earners as well.
Plenty of wealthy Californians are willing to pay this premium. Thousands of companies, including giants such as Google and Facebook, put up with the high taxes and onerous regulations because they depend on the high-tech talent base in such places as the Silicon Valley. Still, even wealthy liberals have to decide whether it’s worth it if taxes keep going up. It’s too early to tell whether the newly imposed 13.3 percent rate will be the tipping point, but anecdotal evidence suggests that pulling up stakes is on a lot of California minds.
Read more: http://p.washingtontimes.com/news/2013/jan/28/golfers-tax-avoidance/#ixzz2JKDzIjqY
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