California is no longer the safe sanctuary before the mass migration is anything to go by. The high taxes that have been imposed on housing and other areas are slowly pushing people to the wall. As a result, most residents are seeking a way out of California to flee the devastating situation.
Surveys show that 26% of California citizens have plans to move to other states while another 9% plans to relocate to other parts of the state such as the Panorama towers and others. What are the effects and measures of the relocation?
The high cost of living is what is pushing these residents away. The utility bills and taxes in California are over the roof. For the housing department, the price was up to 83% by late 2018. As such, purchasing a house in the states is far beyond what most residents can afford.
Surveys show that 26% of California citizens have plans to move to other states while another 9% plans to relocate to other parts of the state
Most of the residents are relocating to Las Vegas. As studies show, 30% of Vegas buyers currently come to Las Vegas as the high rise condos require low maintenance. Such as ownership also gives them a chance to buy something they can lock and leave while in transition and work out the legalities of getting out of California and restructuring a way o avoid paying California taxes. However, as the Californian department is shrinking, that of Las Vegas is booming.
Worldwide, most economies have been hit hard by the current pandemic. Most of these economies continue to register losses. What's more, most government has put in place restrictions to contain the situation.
That said, mass moving is a big blow to an already shaky economy. The same applies to the housing markets; the need for more space and low mortgages is also driving people out of California.
The Californian government is regarded by many of its citizens as aggressive. It has in place, measures, and laws that aim to make the relocation no walk in the park. Simply put, the government is ensuring that one can check out, but never altogether leave.
For starters, the government is considering a wealth tax that targets the residents within and across the state's borders and non-residents who will spend more than 60 days in the states in a single year. For the latter, it encompasses anyone attending college, anyone seeking medical treatment, and anyone spending two months in the state outside New York and London winters. Therefore, moving out of the States is not a relief to the residents as they will still pay the tax for a decade. This tax does not regard residents and non-residents, and it is in the plan so that before and after leaving California, it taxes the earnings.
This means that a child enjoying their summer camp in California will still pay the tax. A scientist who left the state years ago will be taxed. The earning gained before and after acquiring a visitor who stays for two months and acquires wealth through inheritance, estates, and gifts will go through taxation.
The truth is that though the migrating residents are acquiring better living standards in Las Vegas, there is still no celebration as they still have to pay up the wealth tax. It is also a disadvantage because these residents are not at liberty to thoroughly check out of California as the states still restrict them. However, better jobs in other locations are a source of hope under a more civil government. Even though the wealth tax still applies, the migrating Californians have the chance to get affordable housing units and avoid paying excessive utility bills.