[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]
If you make say $250K as a couple – the place where new state tax increases begin to kick in – you’ll probably be paying somewhere north of $20K to the state. With a modest down payment, that annual amount would cover the mortgage on a palace in the Las Vegas area. If you are ‘portable’, the move effectively pays for your housing. But it’s Las Vegas and not Southern California…
