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How much of its tax base will CA loose to other states/countries over the next 10 years if WFH does become a thing? CA should really think super hard about inc
by option 6y ago
How much of its tax base will CA loose to other states/countries over the next 10 years if WFH does become a thing?
CA should really think super hard about incentivizing those leaving SF/Bay Area to settle elsewhere in CA. That will be a net benefit for California.
- virmundi 6y agoProbably none. They will sue saying you left to avoid taxes. The California courts will agree with the State. Now you get to pay taxes in both localities.
- option 6y agoNope, if I move to, say, Bellevue, WA permanently to avoid CA income tax, I will not pay any CA income tax on work done after I relocated permanently from CA. Edit: Source - done that before when relocating (and having the same employer, which has offices in both states)
- virmundi 6y agoThey do this. https://news.bloombergtax.com/daily-tax-report-state/third-time-the-charm-for-california-in-tax-fight-with-inventor https://news.bloombergtax.com/daily-tax-report-state/third-t...
- deleted 6y ago[deleted]
- biomcgary 6y agoCurrently, I'm hiring for a remote US-based position, but may not consider candidates in CA. My HR department says that having a single remote employee in CA leads to tax claims on a company's overall revenue (and a lot of paperwork). Hopefully, most states will soon realize that having remote workers working for out-of-state employers is actually a very good deal for them (income from out of state, reduced road maintenance, etc.)
- gamblor956 6y agoYour HR department is wrong. California lets companies choose how their income should be allocated to the state. Employees in state is just one of the options. You should speak to a tax lawyer or accounting firm.
- dantheman 6y agoOr just avoid California because it's not work the hassle.
- gamblor956 6y agoCA companies won't pay CA level salaries to remote workers in other states. Moreover, many won't even consider hiring out of state workers, as that would expose them to additional labor laws they would need to comply with, making remote workers in other states almost as expensive as in state remote workers.
- option 6y ago“ CA companies won't pay CA level salaries to remote workers in other states.” - this is True. However, in my experience the pay difference is smaller than CA income tax. And then there is cost of living