[quote=ctr70]Another thing for those high income earners who have portable businesses looking to move out of the state of CA to avoid the state income tax, is the cumulative effect of paying a state income tax. If you pay $30k a year in state income taxes, that is $300k over 10 yrs. And you invested that $30k saved every year on a down payment on a cash flow rental or a trust deed, you would have more like $500k+ over 10 yrs. So you are losing $500k over 10 yrs for staying in CA![/quote]

There aren’t many states that don’t have a state income tax. Also, if you plan on conducting business in CA, you’ll have to pay taxes even if you are out of state business.