"Many of California’s richest entrepreneurs have begun to move out to Nevada for one reason – to avoid personal state income taxes. Since the passing of Proposition 30 this past November, income tax has increased by almost 30% for those who make over $1 million a year – a tax of 13.3%.
This increase has led many to flee the state, and Nevada – a state with no personal income tax – seems to be one of their favorite places to establish primary residence. This is easier for wealthy individuals who are empty nesters rather than those with school aged children.
....With the increase of personal income tax brought on by Proposition 30, many potential out-of-state buyers may be deterred to move to California. This is especially true considering that the state now has the highest personal income tax in the nation, as well as some of the highest corporate taxes and sales taxes out of all the states.
....With the increase of personal income tax brought on by Proposition 30, many potential out-of-state buyers may be deterred to move to California. This is especially true considering that the state now has the highest personal income tax in the nation, as well as some of the highest corporate taxes and sales taxes out of all the states.
The impact that this increase in taxes will have is still unknown, but we will surely see the effects in upcoming months. "
My first thought of Nevada is Las Vegas, a hot, busy place. But there's also Lake Tahoe, a beautiful city that straddles the border of California and Nevada. And while it has winter, which many Californians disdain, there are those that may find winter palatable if they are able to keep substantially more of their wealth. Plus, Tahoe to Sacramento is just 104 miles, so in a couple of hours people can be right in the heart of a major California city. I think that if I was in that $1 million + category it would be a tempting consideration. But then, I'd have to be able to afford to move my extended family there too.
