- 800,000 people will leave New York and California over the next three years due to the new tax bill, conservative economists Arthur Laffer and Stephen Moore said in an op-ed in the Wall Street Journal.
- Other economists dispute this finding, say there is no connection between taxes and migration.
- These economists claim high-tax states will likely generate more wealth than they lose.
Conservative economists Arthur Laffer and Stephen Moore are predicting a new mass exodus of wealth from New York and California because of the new tax law. But academics who have studied taxes and migration call the forecast “pure nonsense.”
In an op-ed in the Wall Street Journal headlined “So Long, California. Sayonara, New York,” Laffer and Moore (who have both advised President Donald Trump) say the new tax bill will cause a net 800,000 people to move out of California and New York over the next three years.
The tax changes limit the deduction of state and local taxes to $10,000, so many high-earning taxpayers in high-tax states will actually face a tax increase under the new tax code.
Laffer and Moore say that the effective income-tax rate (what people actually pay) for high earners in California will jump from 8.5 percent to 13 percent. Wealthy Manhattanites would face a similar increase, they say. Those who make $10 million or more will see a potential tax hike of 50 percent or more, according to their analysis.
California again – City of Los Angeles passes $1.2 homeless BILLION tax, then asks homeowners to house them in their backyards
You can only put so many words in a thread title, so you’ll find a fuller explanation at the link below. Here are the basics – Los Angeles wants to duplicate Portland, Oregon’s failed attempt to get homeowners to accept small cottages or “tiny houses” built in their backyards for homeless people. The stipulations and numbers look ridiculous – i.e., a homeless person will have to undergo a strict background check (oh, that’ll work out just fine – find a person who has been homeless any length of time who hasn’t had encounters with police), and annual rents are estimated to start at about $15,000, a “wonderful savings” over…..what? And back to Oregon, there will be “liability” issues, such as…..well, what could possibly go wrong with moving some of these people into your backward where the kiddos play and, presumably (isn’t this why you bought a house in the first place, rather than a condo?) you take refuge from the world?