Even one of the most iconic figures of Bay Area business, Charles Schwab founder and Chairman Chuck Schwab, sees more people leaving California as a result of the tax changes, and not just at the upper end of the income scale.
â€śA lot of companies will be moving their people out of here, unless something happens,â€ť Schwab told the Business Times after his companyâ€™s annual meeting in May. â€śThey can move to Nevada or other places with a lower cost of living. Thatâ€™s really important if youâ€™re raising a family.â€ť
. . . â€śSome clients have moved out of California and others are considering a move to a lower-tax or no-tax state,â€ť said Christine Leong, market manager for J.P. Morgan Private Bank in Northern California. While the limit on tax deductions â€śis certainly a factor, itâ€™s arguably more of a final straw for some taxpayers as opposed to the sole reason for their move.â€ť
Others echo that assessment.
â€śI donâ€™t see the 2018 federal law change as the main cause of despair. Many of my clients moved after Gov. Brownâ€™s Prop. 30 passed and raised the top state income tax rate to 13.3 percent in 2012. Several billionaires moved out of California because of that,â€ť said Paul Bleeg, a partner with the accounting firm EisnerAmper in San Francisco.View Article