“Varney & Co.” host Stuart Varney discusses the “intense” tax year ahead for high-income earners fleeing high-tax states, arguing the states can’t afford to “let ‘em go without a fight” during his “My Take” Thursday.
STUART VARNEY: If you move out of a high-tax state, and you go to a low–tax state like Florida or Texas, watch out.
Because, the tax boards in New York, New Jersey or California won’t let go of you easily.
Especially if you make big money.
Case in point: Elon Musk. Yes, here’s the Musk headline of the day. There’s always at least one.
Elon famously left California and moved to Texas. But he’s been spending a lot of time in San Francisco reorganizing Twitter.
Remember he walked into headquarters with a sink! The tax board there says he owes California tax on the income he earned while in the state.
He’s the CEO of three companies, Tesla, SpaceX and Twitter.
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If he “provided services” at those companies while in San Francisco, and with Twitter he clearly did, then he owes tax.
And that could be a lot of money. He paid $3 billion in 2021! His bill this year will depend on how much time he spent on the job in California.
No wonder he didn’t like anyone tracking him on his private jet!
And then there’s New Jersey, a state where the governor never met a tax he didn’t like. If you move out and claim residence in a low–tax state, the franchise tax board will make you prove that you really do live elsewhere.
They have people who will check out your refrigerator to see what you’re eating in your new home if it really is your residence!
The tax boards in New York and Illinois will be just as aggressive.
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This tax year will be particularly intense. High-tax states are losing high-income people.
They can’t afford to let ’em go without a fight.
And it will be a monumental fight for Elon Musk. They hate him in San Francisco. He’s a cash cow for a state with a $22 billion deficit.
Maybe they’ll drive him and his companies completely out of the formerly Golden State.
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