In a desperate attempt to get California’s budgetary nightmares under control, Democratic Governor Jerry Brown pushed for a tax hike plan last November to increase the state’s overall tax rate on millionaires to the highest in the nation at 13.3%. But now, experts say Brown’s actions may be sparking a tax migration for the high income earners whom the state relies on to pay its bills.
“You’d be a fool not to leave California,” says Ed Botowsky of Chapwood Investments who manages the finances of several professional athletes and high income Californians. Botowsky says some of his clients have already made the decision to flee the state to avoid the tax crunch.
Seven states including Florida, Texas, and Nevada do not have a state income tax. That can mean big savings for millionaires willing to make the move. Tiger Woods’s move from California to Florida will save him an estimated $7.5 million in taxes this year alone. His golf rival, Phil Mickelson, who recently expressed concern over California’s tax squeeze, could save $8 million this year by following Tiger’s lead.