The trend in recent decades has changed exactly the opposite, states the Los Angeles Times. Wealthy people, graduates of prestigious universities and sought-after professionals are leaving the Sunshine State due to high taxes, the cost of living and an overly expensive real estate market. About 750,000 more people left California than moved in in 2021 and 2022, according to new Census Bureau data.

Migration in California has always been uneven, but the financial aspect was mitigated by the fact that people with good education and income flocked here. However, now everything has changed. The latest state-to-state migration data shows that thousands of high-wage, well-educated workers are leaving California whilst fewer come. 

As LAT notes, this change is largely due to high state taxes and the rising cost of living. This combination causes significant harm to the California economy as a whole, as well as to federal and local governments. 

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State budget analysts have forecast a record deficit of $68 billion for the next fiscal year due to a 25% decline in personal income tax collections in 2023. Several county, city and other local taxing authorities also saw revenue declines. This is especially noticeable in the San Francisco area, the publication notes. This trend, according to experts, will be extremely difficult to reverse in the foreseeable future. 

About 750,000 more people left the state than moved in in 2021 and 2022, according to new Census Bureau data. That’s roughly the net loss of Californians five years before the pandemic began. 

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California relies heavily on high-wage workers to meet the government’s budgetary needs. According to LAT, the highest income taxpayers, those earning about $1 million or more, typically account for 40-45% of total personal income tax revenue. 

Even the super-rich and Hollywood stars are leaving the state. So, Elon Musk moved to Texas in 2020 and then moved his company Tesla with him. Actor Mark Wahlberg went to Las Vegas. But there is also a movement of non-star high-income Californians. 

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Recently, Californians have begun to choose Texas or Florida as their top choice for relocation. Next, according to statistics, are the states of Nevada and Tennessee. Moreover, it is known that immigrants there are attracted precisely by low taxes, and in the case of Tennessee, the absence of personal income tax. 

Analysts estimate that California is losing residents in all age groups, but by a significant margin, the largest outflow was among people aged 35-44. This is primarily due to the unaffordability of housing in the state.