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> Further taxes will only increase this exodus. All of Prop 30's projected revenue is based on the fallacious idea that smart, high-earning people are stationar

by muzz 14y ago

> Further taxes will only increase this exodus. All of Prop 30's projected revenue is based on the fallacious idea that smart, high-earning people are stationary targets. They will leave, just as many companies have left. The fallacy is that will be an exodus of high-earners: http://www.cnbc.com/id/49884352/Super_Rich_Flight_From_California_Not_So_Fast http://www.cnbc.com/id/49884352/Super_Rich_Flight_From_Calif... The assumption is that those earners can produce the same income anywhere they go. While that appeals to Randian ideals, it's simply not the case in reality.

temphn 14y ago
This is like Oracle thinking they can raise the price of something forever due to lock-in. That is true until it suddenly isn't. The wealthy of CA are particularly mobile as movies and software require no natural resources. All you need is a few people to start defecting. Is it really "Randian" to believe that people will increasingly use the internet/cloud/telecommuting/Skype/Anybots to work remotely?
- muzz 14y ago
  No, it's nothing like that at all. It would be foolish to assume that all locations are equivalent when it comes to generating income. The differences in different areas far exceed a 1.3 increase in tax rate.
deleted 14y ago
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