California, to leave or not to leave, that’s the question.
California’s population and job growth have both slowed to a trickle, with many citing concerns about high taxes, cost of living and heavy regulations. With the rise of remote work in 2020, over 135,000 more people left California than moved in — the third largest net migration loss ever recorded for the state.
CALIFORNIA DREAMING OR LEAVING? The pandemic has shaken California like an earthquake.
– California’s economy is the fifth largest in the world with a $3.2 GDP
– Between 2008 and 2019, 18000 companies have left California.
– There has been an increase in population but not in jobs.
– California has lost more people to other States than the ones that have gained.
– When you lose companies like Oracle, it changes a lot of things in the State, like the total amount of dollars that are collected by the State, budget allocated to education, infrastructure, and others.
– Hewlett-Packard was born in California and in December 2020 announced that they were moving their headquarters to Houston, Texas. Oracle announced the same month that they were relocating their headquarters to Austin. Tesla is building its next gigafactory in Austin. Others like Toyota, Jamba Juice, Nestle, and others have done the same. Taking thousands of jobs with them.
Small and medium-sized companies are leaving too to states like Arizona, Nevada, Colorado, Oregon, and Washington.
California is known for its high taxes
State business tax climate index – California ranks 50
California Individual income tax rate is 13.3%
Washington, Nevada, Alaska, Wyoming, South Dakota, Texas, Tennessee, Florida, and New Hampshire are States with no income tax on wages.
Texas has high property taxes but when you run everything that you have to pay in texas vs what you have to pay in California, Texas is a better option.
Lots of regulations
High housing costs
High cost of living
Public services are not where they should be
47% of unsheltered homeless Americans live in California
The pandemic is motivating more people to leave California now that they have the option to work remotely for their companies.
Companies like Facebook and Twitter have announced that their workers can work remotely forever.
The majority of people leaving California reported an annual income of less than 100,000. The situation in California can get very bad without essential workers leaving the state.
Super-earners pay 40% of the State’s tax revenues, according to California’s Franchise Tax Board.
Many California residents are hopeful that State Legislators will take a different direction after the pandemic is over. Many will realize that it is not worth it to risk California’s economic future.
It’s not worth it to drive away creative, innovative, and hard-working people.
History shows that California has always been able to come through challenging times. It’s a resilient State. For those of us that are still here, let’s keep moving forward and doing our best to keep contributing to the growth and development of the world’s fifth largest economy.
We don’t ask for handouts Sacramento, just for more business friendly regulations that can help us thrive.
If you want to leave california visit exitcalifornia.org
Please let me know what you think about California? Leave a comment.