The U.S. Census Bureau has found that over 138,000 people have left California in the 12 months ending on July 2017.
Experts believe that many of those people have decided to swap California for lower taxes and cost of living in states like Arizona, Nevada, and Texas. So far, it appears that most of the people who are leaving the Golden State are lower income residents. However, increasing numbers of middle-class residents are also fleeing.
“Rents here are crazy, if you can find a place, and they’re going to tax us to death. That’s what it feels like. At least in Nevada they don’t have a state income tax. And every little bit helps.” San Luis Obispo, California resident Dave Senser told CNBC. Senser lives on a fixed income and is planning to move to Las Vegas.
“The government in the state of California isn’t helping people like myself. That’s why people are running out of this state now.” said Senser.
According to the Tax Foundation, California has the highest income tax rate in the nation at 13.3 percent. Neighboring state Arizona’s income tax rate is a bargain at 4.54 percent. Meanwhile, Nevada has no income tax. California also has higher sales tax rates than its neighbors. The Golden State has also recently increased the gas tax.
California is also in the grips of a housing crisis. The median home price in the state is $561,000 according to realtors. At that price level, a household would have to earn $115,000 a year, and that’s with a 20 percent down payment. Unfortunately, most California households only make about $80,000 annually.
Homelessness has emerged as a growing problem in California cities. Los Angeles, San Diego, and San Francisco are home to sizable homeless camps. Orange County recently cleared out a homeless encampment. Contractors and workers disposed of 250 tons of trash, 1,100 pounds of human waste, and 5,000 hypodermic needles from that one camp. Human feces litter the streets of Los Angeles and San Francisco, causing disease outbreaks among their homeless population.
Another reason why California is in the grips of a housing crisis is overregulation. “California has a housing crisis. We can’t provide housing to our citizens,” Rita Brandin, with San Diego developer Newland Communities told Fox News. “In Georgia, Texas, and Florida, it can take a year and a half from concept to permits. In California, just the process from concept to approvals is five years – that does not include the environmental lawsuits faced by 90 percent of projects.”
Recently, California was named the state with the worst quality of life in the country. The state has the worst urban air quality in the nation.
California has become a hotbed of leftist political activity in recent decades. Democrats control all statewide offices and enjoy a supermajority in the state legislature.
AAN Staff
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