3 ms·

Of course it’s greedy, but on the other hand wouldn’t you be crazy to not try to get out of paying millions in taxes?

Johnny555 6y ago
Though it's not millions in this case, the top marginal tax rate in CA is 12%, so he's saving at most $850K if this was a one-time $7M payment. Not sure that 12% is worth picking up my family and moving to another state if that's the only reason to relocate. CA and WA weather and lifestyle is much different than what he saw in Southern California (I'm guessing that's where he lived since he was in the music industry). I made that move (from SF Bay Area to Seattle) about 5 years ago (but for work, not taxes), and I'm thinking about going back to CA for the milder winters.
- throwaway1777 6y ago
  850k is worth moving to another state for a year, especially if this is not repeatable income, but that’s just me.
  - Johnny555 6y ago
    I think it'd have to be more than a year if you really want to escape taxation. If you leave the state, earn $7M, then move back a year later, California is going to be taking a close look at when you actually earned that money. Though moving is easier and cheaper for a single person living in an apartment than someone with a family and house.
    - sushid 6y ago
      If it's legit, why does it matter? Presumably that person's song took off and they were able to forecast that they'd make $X, which was worth the move to WA.
      - Johnny555 6y ago
        If he's moving to escape taxation, it's not legit (in the eyes of the Franchise Tax Board), and if he did the work while he was living in California, they're going to want (and almost certainly will get) their share.
- vmception 6y ago
  You only have to relocate for a maximum 6 months and 1 day. As in, your US address needs to be in the lower tax state. So, if its after June when your windfall hits, that particular option is removed and you have to focus on offsetting deductions. But it resets January 1, every year :)
Varriount 6y ago
No, because (again, ideally) those taxes are going to be used to benefit the common good. Trying to get out of paying them would be like saying, "of course I should get help from everyone else for education, housing, infrastructure, etc., but goodness forbid I actually return the favor later on so that others get the same benefit!" Anyway, it's not like such taxes take away so much of your earnings that you're left with a pittance. At some point you have to ask yourself, "is the amount of happiness I gain from keeping this amount of money worth more than the various things it will be spent on, and the benefit it will give to others?" (I'm reminded of the Simpsons episode, "The Last of The Red Hat Mamas, where Mr Burns pledges to donate money to a children's hospital, but then uses it extend his own life instead - by 10 minutes[0]) It's a sign of the sad state of things that taxes are treated more like throwing money away, than being a resource used for the common good. [0] https://youtu.be/-Icbia3fDuY?t=45 https://youtu.be/-Icbia3fDuY?t=45

Though it's not millions in this case, the top marginal tax rate in CA is 12%, so he's saving at most $850K if this was a one-time $7M payment. Not sure that 12% is worth picking up my family and moving to another state if that's the only reason to relocate. CA and WA weather and lifestyle is much different than what he saw in Southern California (I'm guessing that's where he lived since he was in the music industry). I made that move (from SF Bay Area to Seattle) about 5 years ago (but for work, not taxes), and I'm thinking about going back to CA for the milder winters.

throwaway1777 6y ago
850k is worth moving to another state for a year, especially if this is not repeatable income, but that’s just me.
- Johnny555 6y ago
  I think it'd have to be more than a year if you really want to escape taxation. If you leave the state, earn $7M, then move back a year later, California is going to be taking a close look at when you actually earned that money. Though moving is easier and cheaper for a single person living in an apartment than someone with a family and house.
  - sushid 6y ago
    If it's legit, why does it matter? Presumably that person's song took off and they were able to forecast that they'd make $X, which was worth the move to WA.
    - Johnny555 6y ago
      If he's moving to escape taxation, it's not legit (in the eyes of the Franchise Tax Board), and if he did the work while he was living in California, they're going to want (and almost certainly will get) their share.
vmception 6y ago
You only have to relocate for a maximum 6 months and 1 day. As in, your US address needs to be in the lower tax state. So, if its after June when your windfall hits, that particular option is removed and you have to focus on offsetting deductions. But it resets January 1, every year :)

Varriount 6y ago

No, because (again, ideally) those taxes are going to be used to benefit the common good. Trying to get out of paying them would be like saying, "of course I should get help from everyone else for education, housing, infrastructure, etc., but goodness forbid I actually return the favor later on so that others get the same benefit!" Anyway, it's not like such taxes take away so much of your earnings that you're left with a pittance. At some point you have to ask yourself, "is the amount of happiness I gain from keeping this amount of money worth more than the various things it will be spent on, and the benefit it will give to others?" (I'm reminded of the Simpsons episode, "The Last of The Red Hat Mamas, where Mr Burns pledges to donate money to a children's hospital, but then uses it extend his own life instead - by 10 minutes[0]) It's a sign of the sad state of things that taxes are treated more like throwing money away, than being a resource used for the common good. [0] https://youtu.be/-Icbia3fDuY?t=45 https://youtu.be/-Icbia3fDuY?t=45