The state’s wealthiest 1 percent, for instance, pay 48 percent of its income tax, and the departure of just a few families could lead to a noticeable hit to state general fund revenue.
They have been leaving for years. Especially all the former state employees with Calpers pensions. I suggest taxing those pensions whether they stay or not. Might straighten out the bureaucracy a bit…
Truly wealthy people can afford several homes and say they live in Nevada and still spend time in California… no matter what tax rules are made the wealthy can afford the best advice on how to minimize their taxes. That is why middle and upper middle class always pay the greater percentage burden.
As far as Larry and Mark. They live off net worth
I am sure they pay very little in taxes compared to net worth
Switzerland has a one percent wealth tax to get some money out of the truly wealthy…
The only billionaire I know left California over a year ago.
Even for me, it was easily over $1k/mo savings on base pay. Then it’s 9.2% savings on all RSU and investment income. That’s not a trivial amount of money and makes the gains compound faster.
My friend Ken Fisher lives in Woodside. But has a
100000sf office building in Vancouver, Washington . Probably has a house there and collects his paycheck there. I sure a lot of billionaires think like him.
I remember CA rule is if you have an assigned desk/office, then you need to pay CA income taxes for the days you work in CA. If you don’t, then you don’t need to pay them. We had a VP from another state who was in CA over 50% of the time. There was a small freak out when someone put his name on his office. The name got removed and the office was officially “unassigned”.
No… but…Mark Z did say that if he could do it over again, he wouldn’t come to SV. He thought he had to to get funding, but in retrospect he would’ve done it differently.
That comment alone could keep the next Facebook staying in Boston.
Nah. He made that comment at Harvard. I think it was out of courtesy or something. VC’s in Boston had turned him down. It’s also not just the money. He couldn’t have assembled his dream team back east.
But what big start ups have sprung from Boston in the last 10 years? We were taking about Dropbox the other day and it’s another example of founder moving from Boston to Silicon Valley to make it big.
I wasn’t thinking about engineers in Mark Z’s dream team. I was thinking about people like Sean Parker and Sheryl Sandberg.
Fact is though, that if biomed can be successful there, so can a software company. Plenty of software engineers are still there. MIT is 1/3 EE/CS graduates, and many other majors end up working as software engineers.
And some companies are bought by larger ones instead of IPOing.