A real estate developer:
In 2012, the progressive Democrats captured a super majority in both houses so that with their Progressive governor, they no longer require a single Republican vote to pass any form of legislation, leaving conservatives an “irrelevant” minority. As an independent businessman, I have created many jobs and opportunities. But despite my contributions to society, and the taxes I have paid over the last thirty plus years, the Progressives believe I need to pay more so that I pay “my fair share.” Only when I pay my fair share can their blue vision of utopia be fulfilled.
What is my fair share? Under existing Federal and State income tax rates, I will pay 50% of my income in taxes. In California alone, my “fair share” on a million dollars of income is $133,000 each year. In exchange for my taxes, I receive little from the state. In addition, I pay gasoline taxes that pay for the upkeep of the highways. I pay airline taxes that maintain the airports I use. I pay among the highest in the nation sales tax on what I consume. I pay property taxes for the schools my grown children no longer use (they have already left California). I pay utility taxes for the upgrade of infrastructure. I pay higher health insurance rates. I already pay more than my own way.
I used to develop new homes in California and paid development fees, school fees, park fees, bridge & thoroughfare fees, endangered species fees, utility hook up fees, and processing fees to employ the city workers who reviewed my plans. Such fees totaled $40,000 to $75,000 for each new home built in California. I more than paid my own way. Such new homes are no longer feasible in California considering that home prices have fallen between 20-40% since 2008. And with the new regulations to be imposed in 2013 with the passage of the Global Warming Solutions Act of 2006, housing and energy will cost even more making new houses even less attractive than they are now.
The number 1 topic of conversation amongst the despised 1% in California today is when you are leaving California or whether you can leave. Property owners who cannot move their apartment building or office complexes can move their homes and change their residency. On a flight from Austin, Texas to Orange County last week, I sat next to the owner of a substantial manufacturing business whose plant is in the inland southern California community of Ontario. He lives in Austin, flies in on Monday and home on Thursday. He spends less than 180 days a year in California. His savings in state income taxes more than pays for his airfare, hotel and rental car expenses. His home and gas and energy all cost less in Texas. More significantly, he will not expand his plant in California and intends to move his plant and people to Texas over the next five years.
The migration is real and it will accelerate.