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The saving grace is that the number is the average ("mean") of the top 5%. The average net-worth of me and Jeff Bezos is over $70 Billion!
The cut-off line is significantly lower.
Yup. And those 5% provide like 70% of total income tax revenues.
That's about 100,000 people total. So if only 10% (10,000) leave, state revenues will take enough of a hit to cause probs in Sacramento.
And thanks to Trump's tax law changes, those 100,000 have a large incentive to leave the state now that they can only deduct up to $10,000 in SALT.
And many of them are doing just that.
The saving grace is that the number is the average ("mean") of the top 5%. The average net-worth of me and Jeff Bezos is over $70 Billion!
The cut-off line is significantly lower.
5. California
How much you need to be in the top 5 percent (lower end): $250,000
Top 5 percent mean annual household income: $447,207
So, if you make exactly $250,000, you just barely made it into the top 5% of Californians.
That is actually true for San Francisco, where the median house price is something like $1.5M.
$250K is only 1/6 of the median house price in SF, and traditional rule of thumb is that you can afford a house about three times your income. So $250K can afford a $750K house.
It truly is insane, mostly caused by extreme NIMBYism preventing the building of the necessary housing.
FortWayneIndiana says
I can attest that I did know a man who left recently. He was a financial advisor averaging $420k a year. He's moving to Florida.
Let's hope that your friend did not take liberal ideas with him and contribute to turning FL into what he escaped from.
CA you need about 400k to be in top 5% pre tax.