Trump/gop victory should be a boon to low-tax Nevada
PDonald Trump just gave our city and the state of Nevada the greatest opportunity of a lifetime. You see, Trump just made it much more painful for high-income earners and business owners to stay in California and other high-tax states.
The new Trump tax law will put the final nail in the coffins of big-tax, big-spend, big-welfare and big-government California, New York, New Jersey, Connecticut, Massachusetts, Maryland and Illinois. They are finished. Kaput. Adios.
No, I don’t mean that everyone will leave California. I mean that many people who make more than $250,000 a year will leave California. Many people who own businesses will leave California. Those who hold million-dollar mortgages will be tempted to leave California. People saddled with $20,000 or higher property tax bills will consider leaving California. There is no choice. The new Trump tax law makes it virtually impossible to stay.
Let’s look at a California entrepreneur, executive or professional earning $1 million a year. He owes about $140,000 a year in state income taxes on that million-dollar income. Plus, I’m betting $50,000 in property taxes on a beautiful home. Add in sales taxes and car registration fees. He is easily paying $200,000 or more to the state of California.
But under the new law, he may deduct only $10,000 from his federal taxes. So he has a 37 percent federal tax liability on $200,000 that he has already paid in taxes. You do the math. That’s a minimum of $74,000 he now owes Uncle Sam on money he doesn’t have — because it’s already been stolen by Sacramento.
Good luck. A person could wind up broke really fast in Beverly Hills or Manhattan or Greenwich on those numbers. I’m talking about people who make $1 million a year. Pity the poor chump who makes “only” $250,000 to $500,000 with two kids in private school, a big mortgage and — thanks to Barack Obama — health insurance bills of $3,000 per month.
Trust me, the entire high-income, high-networth, business-owning population of California is making plans to leave. These are the crème de la creme. These are the people who pay almost all the taxes and create all the jobs. They pay into the system and take nothing out. Any state would die to get these taxpayers.
Everyone with big incomes and assets and businesses to protect is making plans to leave now. As soon as their homes sell, these refugees will be on the run.
Don’t take my word for it. Goldman Sachs is already predicting a mass migration of top earners from Manhattan to zero-tax states. Bloomberg reported days ago that many of Wall Street’s top traders are considering a move to Florida. Zerohedge.com reports that New York’s billionaire hedge fund managers are all looking to move to Florida or Texas. One article quoted a respected CEO of a top accounting firm as saying, “It would be irresponsible if you weren’t thinking of moving.”
California just got hit by an earthquake. But this is far bigger than the San Andreas Fault. Anyone making $250,000 or more per year has to get out of California. Fast.
Thanks to Trump, this is the opportunity of a lifetime for Nevada. This is a chance to bring the wealthiest, smartest, most productive people in California and New York to zero-tax Nevada. They will spend here, invest here, buy big homes, pay property taxes to fund schools, start businesses and create thousands of high-quality jobs.
The billion-dollar questions are: What is Nevada doing about it? What is Las Vegas doing about it? What’s the plan? Are we recruiting? Do we have TV and radio ads ready? Do we have a compelling presentation ready? Dear Gov. Brian Sandoval and Las Vegas Mayor Carolyn Goodman, I stand ready to assist. I know exactly how these taxpayers think. I was one of them.
This is the opportunity of a lifetime. They’re all going somewhere with low taxes. Why not Nevada?
Contact Wayne
Allyn Root at Wayne@ Rootforamerica.com. Hear or watch the nationally syndicated “WAR Now: The Wayne Allyn Root Show,” from 3 to 6 p.m. daily at 790 Talk Now and at 5 p.m. on Newsmax TV.