Thinking of leaving California? You're not alone.

The recession is upon us.
While still not official, most agree that we are in an economic downturn. Unemployment is rising, housing prices are plummeting and energy costs are soaring. As a result, in this election year, the federal government is offering tax rebates (admittedly ill-advised) to lessen the pain.
But in California, politicians think there are only two times to raise taxes -- good times and bad times. Oddly enough, this is one of those times.
Unfortunately, this long-term California-politician affair with ever-higher taxes (coupled with ever-more oppressive regulations) has consequences.
Each year, the Washington, D.C.-based Tax Foundation calculates Tax Freedom Day. The calculation assumes we pay all our federal, state and local taxes first, and then, later in the year, start working for ourselves. This year, California's Tax Freedom Day is April 30 ---- the average Californian works four months out of the year just to pay taxes.
But an even bigger concern for our state's economy is our high taxes compared with other states. In 1994, California ranked 28th in Tax Freedom Day among the states (50th is best). For the last four years, we've been ranked fourth. Our state and local taxes have soared these past 14 years.
Then consider the Tax Foundation's new 2008 "State Business Tax Climate Index," which measures taxes plus other anti-business factors. Since 2004, California has slipped from 39th worst to 47th worst. While business property taxes are low, the rest of the state and local taxes range from bad to awful. The corporate state income tax ranks 40th worst. That state sales tax ranks 42nd.
But the nastiest state tax is the personal income tax. California is now ranked the worst state in the union for productive workers, investors and entrepreneurs. Included in that ranking is the fact that California taxes capital gains as ordinary income.
So guess what?
When comparing net interstate migration of U.S. residents, the latest Census Bureau data shows that for 2003, 2004 and 2005, California has annually lost about 250,000 people. Productive people. People with investment assets. People seeking better business opportunities coupled with lower taxes.
Quoting from a recent Howard Jarvis Taxpayers Association article: "The native-born out-migration flows have become so systematic that the cost to rent a U-Haul to move from Los Angeles to Boise, Idaho is $2,090 -- or some six times more that the cost of moving in the opposite direction."
If even just a few of the proposed 2008 state and local tax increases go through this year, California's downward economic slide and adverse out-migration will only get worse.
But let me give you one reassurance. No matter how bad California's economy gets, the following year politicians will propose their cure-all solution -- higher taxes. Count on it.
Richard Rider is chairman of San Diego Tax Fighters. This article originally appeared in North County Times.
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