Californians are coming! Californians are coming!
It’s not like they haven’t rushed from high-taxed California to low-taxed Nevada before. They have. And in droves.
But Election Day in California resulted in actions that will likely cause a fresh rush of Californians coming here to escape new higher taxes there.
Proposition 30 in California passed by 54 percent to 46 percent. It does two things to raise money for education. It raises the state sales tax by a quarter-cent for four years. It also creates a four-tier system, increasing income tax rates for those earning more than $250,000 a year by 3 percent for seven years.
The highest rate is for those making more than $1 million, who will see their income tax rate rise to 13.3 percent. Combine that with federal income taxes, and it’s a reason to flee.
On top of those increases, the California Legislature now has a two-thirds majority of Democrats, enough to pass other tax increases as well.
The Wall Street Journal bemoaned this in a Nov. 9 editorial: “The silver lining is that Americans will be able to see the modern liberal-union state in all its raw ambition. The Sacramento political class thinks it can tax and regulate the private economy endlessly without consequence.”
However, the Journal holds out hope that “at least Californians can still escape to Nevada or Idaho.”
Actually, retired Nevada archivist Guy Rocha, a liberal to his toes, predicted the same thing. He expects wealthy Californians will decide to relocate to Nevada, presuming they can sell their California homes.
Maybe that’s a positive for Nevada.
Rocha heard that a real estate agent in Nevada’s ritzy Incline Village was flooded with calls the day after the election, asking about the housing market there, and the availability.
Gov. Brian Sandoval now has another weapon in his arsenal to lure Californians to the Silver State, since the new Nevada Legislature is controlled by Democrats, but not by a two-thirds majority. That means legislative Democrats won’t be able to shove a tax plan through knowing they could override any veto by Sandoval.