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“Exit Taxes”: How California Tries to Stop the Lower Middle Class From Fleeing for Texas

Saturday, March 11, 2017 19:57
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(Before It's News)

By Tyler Durden

California exports more than commodities such as movies, new technologies and produce. As The Sacramento Bee reports, it also exports truck drivers, cooks and cashiers.



Every year from 2000 through 2015, more people left California than moved in from other states. This migration was not spread evenly across all income groups, a Sacramento Bee review of U.S. Census Bureau data found. The people leaving tend to be relatively poor, and many lack college degrees. Move higher up the income spectrum, and slightly more people are coming than going. About 2.5 million people living close to the official poverty line left California for other states from 2005 through 2015, while 1.7 million people at that income level moved in from other states – for a net loss of 800,000. During the same period, the state experienced a net gain of about 20,000 residents earning at least five times the poverty rate – or $100,000 for a family of three…

“There was really nothing left for me in California,” said Kundurazieff, who also writes a blog about his cats. “The cost of living was high. The rent was high. The job market was debatable.”

Not surprisingly, the state’s exodus of poor people is notable in Los Angeles and San Francisco counties, which combined experienced a net loss of 250,000 such residents from 2005 through 2015.

The leading destination for those leaving California is Texas, with about 293,000 economically disadvantaged residents leaving and about 137,000 coming for a net loss of 156,000 from 2005 through 2015. Next up are states surrounding California; in order, Arizona, Nevada and Oregon.


Losing impoverished residents to other states is better for the state’s economy than losing wealthy residents, some experts said. But they said the migration itself is a symptom of deeper social problems largely related to how expensive California has become.

“Why are people leaving? Economic reasons, the high cost of living, are certainly a part of it,” said Hans Johnson, senior fellow at the nonpartisan Public Policy Institute of California. “For those people (near the poverty line), California is not viable.”

By some measures, California has the highest poverty rate in the nation.

And as more and more residents leave, the burden to fund the state’s welfare exuberance will fall more and more on the wealthier (that actually pay taxes). Rather than secession, perhaps it’s time for the wealthy to join ‘the poor’ exodus and beat the crowd out of California…

George Bernard Shaw said, “A government that robs Peter to pay Paul can always depend on the support of Paul.” In many cases Peter quietly moved away and took his money with him.

Remember when top professional golfer, Phil Michelson created quite a stir complaining about California taxes, while putting his home up for sale? He would have been better off staying quiet about his reasons. California Political Review reports:

“Tiger Woods moved from Orange County, California to Orange County, Florida. In the first year of that move, he saved $13 million in taxes. Is it worth $13 million a year taken by government to live in California? Woods said no. Now it looks like Phil Michelson is about to make the same decision. He earns $60 million a year-he would save north of $5 million a year to move to a free State, like Florida or Texas.”

And as Dennis Miller previously noted, the election of President Trump sent shock waves through much of the political class. Many public union pensions are woefully underfunded. They donated millions to Hillary Clinton’s election campaign and expected federal bailouts. They knew they could count on Mrs. Clinton; she has a great track record of rewarding her political donors. Today no one knows what the new administration will do.

In the meantime, the scramble is on. The politicians in states that have been heavily supporting Paul have a huge base, not because they have won over the hearts and minds of Peter; but rather because the working class got tired of being fleeced and left. The politicos have to find ways to make good on all their free programs. Cutting benefits will cause citizens to storm the palace. They must find ways to generate more revenue.

Brian Daniels warns us, The Growing Specter of State “Exit Taxes” as Residents Abandon High-Tax States:

“To be clear, it is not legal for states to charge a true exit tax on citizens changing their residency from one state to another (this is not the case for the federal government, which does charge a large exit tax).

So what do high-tax states do to try and prevent their residents from moving their legal residence to low- or no-tax states? In a word, they audit them.”

When a taxpayer is audited, the agency issues an assessment for unpaid taxes. It’s not “innocent until proven guilty.” You must prove they are wrong or the assessment stands.

Once you intend to leave you are of no value to the politicos. Most people do not have the means to go to court. For some, it becomes a government shakedown to extract as much wealth as they can on your way out the door.

Read more stories at Zero Hedge. 


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Total 10 comments
  • so the CRIMINALS of the Communist state of california, prove yet once again, what kind of criminals they are.. they issue a bill and challenge people to prove it’s not owed!

    • the mafia did think of that,, why do you think the mafia infiltrated govt several decades ago?

  • Spot on article…there is another silent exit brewing in WA State. This is a State that is so unbalanced in true elected State representative Govt. It is beyond insane. The State Legislature can not even Fund Basic Education, Over the top Car Tab Fees to pay for Mass Transit west of the Cascade Range, fleecing the pour in Eastern Washington State. This is a State where the Local State Judicial branch has imposed daily fines to the Legislator for not funding Education. As of this morning the Fine is over $565 Million Dollars. Stupidity at its highest form. Fine yourself. Idiots. Complete Idiots. It gets even better. Keep reading below. Tick, Tock, Tick Tock, a silent Time B*mb is in the making….as the residents aregrowing restless each day. These are they days that try men’s souls.

    In addition to destroying basic economic foundations, The AG Bob Ferguson has recently introduced House Bill 1134 in the State Legislator and his illegal attempt to pass the most aggressive “Anti” Firearms” legislation ever proposed in the History of the United States.. This egregious “Gun Grab” takes WORD-SMITHING to a whole new level. They call it an “Assault Weapon Ban” when in reality it is a “Semi-Automatic Firearm Ban.” And to make things even worse, last week the Governor of WA. State signed his own “Executive order” naming WA. State a ‘Sanctuary State”…..WTF….STOP THE MADNESS. News Flash….Semi Auto Firearms have been legal in the USA for over 230 years.

    The outright and blatant attempt by Governor Jay Inslee and AG Bob Ferguson in WA State, is in fact so egregious and unlawful that they both need to be arrested, charged with Treason and Sedatian under US Code Title 18.
    More lunatic left wing fools, shooting themselves in the foot, simply out of pure ignorance and stupidity.

  • Go Back to California or somewhere else.
    We do not need / want any “Fruits and Nuts”.
    We got enough “Illegal Mexicans to deal with.
    There are not enough jobs to go around.
    I can not afford to feed you.

  • Instead of fleeing from the Tyranny; how about you “Man Up” and fight for yourself.

  • We don’t need any more so-cal douchbags here in Texas keep driving all the way to the east coast!

  • If you own a home in Texas you are taxed to death. If you rent you aren’t. There is no personal income tax in Texas but the real estate tax will zap you good…… If you move to Florida there is no state personal income tax but the real estate taxes are not as high as Texas. Make sure you do your homework before moving to either Texas or Florida or you will get zapped real good.

    • Don’t kid yourself. You don’t think property taxes are considered when determining what rent is charged? Your rent includes the property tax. This is just like corporate taxes. The corporation doesn’t pay the tax, everyone who buys the product, or service the corporation furnishes, pays the corporate tax.

  • I hope it doesn’t happen, but history shows the highly educated morons from California, will move to another state, (Texas now) and do everything in their power to turn it into the same type of shit hole they are escaping from. I think all states should prohibit cars, or people from California from contaminating the other states.

  • Wa

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