Almost DailyBrett’s super-smart tax accountant moved from California to … Nevada.

Wonder why?

How many other wise people did the math, followed in her footsteps, and made a move in their best lifestyle and financial interests?

Let’s see, the state income tax in California is the nation’s highest, maxing at 13.3 percent … for now. Yikes.

The state income tax in Nevada is … nada.

Hmmm … given a choice … what action will a clever tax accountant with disposable income make? Ditto for anyone else with a brain and a pulse.

Growing up, your author read countless accounts about people pulling up stakes in the rust belt and setting sights for the sun belt.

That trend continues unabated today except when it comes to one sun belt state in particular, California.

After the upcoming 2020 decennial Census, the Golden State is projected to lose a seat in Congress (and a corresponding electoral vote) for the first time in its 171-year history.

California Governor Gavin Newsom and his Sacramento disciples are desperately trying to ensure an accurate count to avoid the indignity under their watch associated with losing an electoral vote.

Let’s see, California with 12 percent of the nation’s population is the “home” to 22 percent of the nation’s homeless. Can California count those who don’t have a home — even newly arrived homeless — as residents? What about those who came across a Southern border … ? Count the names on the tombstones?

Oh heck, let’s just slap on a few more social engineering regulations (e.g., rent control, solar panel installation requirements) and raise taxes again and again … and pretend what’s happening is not happening.

Which State Gains From California’s Diaspora?

We know from CNBC’s Robert Frank that population outflows are costing New York $10 billion in revenues (largest hit in the nation), and Florida is gaining $16 billion in increased revenues as a result of in-migration.

The same report indicated that California is losing $8 billion in state revenues. Those lost souls are no longer in the gravitational pull of the Franchise Tax Board (FTB) and Golden State regulatory social engineers.

California and Alabama (two peas in a pod?) appear to be the only sun belt states slated to lose congressional seats after the next Census.

Conversely, there are nine states in the union with zero state income taxes, and none of them will lose a congressional seat. In fact, Texas is set to gain three congressional seats from 36 to 39, and Florida is expected to add two more from 27 to 29. These two red states are getting politically stronger.

Should we assume that no state income tax Texas or Florida will benefit from California’s lost congressional seat?

Considering that California lost 700,000 residents in 2018 alone, and 86,000 of this number moved to Tejas … the red Lone Star State could be the beneficiary of the blue Golden State’s electoral college loss.

Late last year, retail investment pioneer Charles Schwab announced it will move its corporate headquarters from San Francisco to Dallas. Can you blame them?

Let’s see, the corporate tax in San Francisco is 8.84 percent, Dallas, 0.75 percent. San Francisco also imposes a 0.38 percent payroll tax, and a 0.6 percent gross receipts tax. Typical monthly rents in The City are $3,870 and only $1,200 in Big D.

Looking North, Looking East …

Keep in mind that no sales tax Oregon is expected to gain one congressional seat, raising its number of electoral votes from seven to eight for the 2024 general election. The Grand Canyon State anticipates adding another seat to its congressional delegation, increasing Arizona’s electoral votes from 11 to 12.

To be fair, this Almost DailyBrett analysis needs to acknowledge that California with its gorgeous weather and picturesque coastline, not to mention Silicon Valley, will still have the largest electoral count just with 54 votes, instead of 55.

As a press secretary for former California Governor George Deukmejian (two terms, 1983-1991), your author noted the Golden State’s Electoral College count was 45 in 1980, 47 in 1984 and 1988, and 54 in 1992. California’s electoral college number jumped nine congressional seats in those heady days, when the state was not raising taxes and not burdening it’s citizens and businesses with onerous regulations and social engineering schemes.

Taxes and rising expenses/burdens are not the only reasons for the flight of California’s Growing Diaspora. Congestion is becoming unbearable with 2 million more joining the commuting ranks since … 2010.

Housing costs are prohibitive, not to mention the property taxes that go along with these rising market values. The sweet two-bed, one-bath 960-square foot Oakland fixer-upper (see photo above) is on the market right now for … $988,000.

Nice curb appeal.

Some may want to sweep the lost congressional seat under the proverbial rug and recite tired stats about California being one of the largest economies in the world. Almost DailyBrett sees the loss of an electoral vote as the canary in the mine.

People are voting with their feet, and California is the loser … Texas, Arizona, Nevada and Oregon are the winners.

https://www.latimes.com/california/story/2019-12-31/la-me-ln-california-apportionment-2020-census

California likely to lose congressional seat for first time in history after 2020 Census

https://www.dallasnews.com/business/real-estate/2019/12/10/almost-700000-californians-moved-out-of-state-last-year/

https://www.wsj.com/articles/schwab-leaves-san-francisco-for-texas-11574900348

https://almostdailybrett.wordpress.com/2019/06/20/californias-growing-diaspora/

California’s inept central planners