{"id":9294,"date":"2024-03-01T13:32:23","date_gmt":"2024-03-01T14:32:23","guid":{"rendered":"https:\/\/wifamily.news\/?p=9294"},"modified":"2024-03-01T15:01:55","modified_gmt":"2024-03-01T15:01:55","slug":"high-tax-states-continue-to-drive-away-high-income-earners","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=9294","title":{"rendered":"High Tax States Continue to Drive Away High Income Earners"},"content":{"rendered":"

This post originally appeared at https:\/\/www.bootsandsabers.com\/2024\/03\/01\/high-tax-states-continue-to-drive-away-high-income-earners\/?utm_source=rss&utm_medium=rss&utm_campaign=high-tax-states-continue-to-drive-away-high-income-earners<\/a><\/p>\n

In 2023, California\u2019s population dipped below 39 million, the lowest count since 2015, according to the U.S. Census Bureau.\u00a0Data<\/a>\u00a0shows the state lost 75,423 residents last year \u2014 continuing a dramatic trend that started with the onset of the COVID-19 pandemic in 2020.<\/p>\n

What\u2019s concerning is not\u00a0how many<\/strong>\u00a0people are leaving \u2014 the state has experienced lopsided out-migration for decades, according to the\u00a0Los Angeles Times<\/a>\u00a0\u2014 but\u00a0who<\/strong>\u00a0is leaving.<\/p>\n

Analysis of the approximately 750,000 people who have bid farewell to California over the last three years has revealed that thousands more high-earning, well-educated workers have left the Golden State than have moved in.<\/p>\n

[\u2026]<\/p>\n

It is not just wealthy residents leaving; businesses are also exiting the state \u2014 again due to high tax rates,\u00a0punitive regulations<\/a>, high labor, utility and energy costs, among other things.<\/p>\n

That loss of vital income tax is very problematic for California, which is\u00a0facing a record $68 billion budget deficit<\/a>, largely due to an unprecedented drop in tax revenue.<\/p>\n

[\u2026]<\/p>\n

In tax years 2020 and 2021, the average gross income of taxpayers who moved from California to another state was about $137,000, according to IRS migration and personal income\u00a0data<\/a>.<\/p>\n

That would place those individuals in California\u2019s largest state income tax bracket \u2014 at 9.3% \u2014 which applies to single filers who earn between $61,215 and $312,686 per year, or married couples filing jointly with an annual income of $122,429 to $625,372.<\/p>\n

If you earned $137,000 last year in California, your estimated state income tax for 2023 would be $9,896, according to the\u00a0SmartAsset tax calculator<\/a>. And if you reduced your taxable income by maxing out your 401(k) contribution at $22,500 (the 2023 total) and your IRA contribution at $7500 (for those aged 50 and older), your estimated state income tax would be around $6,827.<\/p>\n","protected":false},"excerpt":{"rendered":"

This post originally appeared at https:\/\/www.bootsandsabers.com\/2024\/03\/01\/high-tax-states-continue-to-drive-away-high-income-earners\/?utm_source=rss&utm_medium=rss&utm_campaign=high-tax-states-continue-to-drive-away-high-income-earners In 2023, California\u2019s population dipped below 39 million, the…<\/p>\n","protected":false},"author":9,"featured_media":385,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-9294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boots-sabers"],"_links":{"self":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/9294","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9294"}],"version-history":[{"count":1,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/9294\/revisions"}],"predecessor-version":[{"id":9295,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/9294\/revisions\/9295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/media\/385"}],"wp:attachment":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}