Personal Income Fell $24B in California as Prosperous Flee, Poorer People Enter

Craig Bannister | July 9, 2024
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An exodus of prosperous Californians cost the state $24 billion in personal income over a two-year period, according to an analysis of new Internal Revenue Service data.

What’s more, they’re being replaced by poorer people entering the state, many of whom are relying on government spending, The Center Square reports:

“Outmigration to other states cost California $24 billion in outgoing personal incomes across 2021 and 2022, according to new IRS data. Departing Californians were significantly wealthier and more likely to have children or spouses than incoming Americans, suggesting wealthy families are leaving the state as poorer individuals come to seek their California dream.”

Over that two-year period, California lost a net 144,203 tax filers and the average adjusted gross income of those who left the state during the period ($130,946) was $19,257 lower than that of those entering ($111,689).

More than three hundred companies have left California since January 2019, reducing the number of private sector jobs.

With private sector employment declining by a net 154,000 jobs since September 2022, California’s recent job growth has been entirely due to an increase in public sector and taxpayer supported jobs, as a separate Center Square article explains:

“California’s state-funded, non-partisan Legislative Analyst’s Office found the private sector lost 154,000 jobs and the public and public-supported sector has gained 361,000 jobs since the peak of the state’s labor market in September 2022. This means on net, the state’s 207,000 job increase in employment since September 2022 has been from growing government-related hiring.”