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Butowsky: You’d Be a Fool Not to Leave California

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    Chapwood Investments’ Ed Butowsky on the wealth migration taking place in the U.S.

  • Duration 4:30
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Would say by moving from California to Florida how about a hundred million adults.

Our next guest is -- at precisely the same -- exodus the rich moving from a high tax states to low tax states like Texas Arizona.

Tennessee Florida.

Joining us now is Edward -- and he has witnessed.

Would investments welcome back -- the program -- great -- here.

You're gonna tell me about your clients no names please write but clients of fuel has moved on the move in California -- someplace else right.

You probably a gentleman.

Instrument moving from Orange County two -- and a.

Moved raid into Dallas and in what his number one reason was the taxes and so there's no reason for me to pay -- the CEO of a public company said I'm Don.

Moved to Dallas got an apartment and just gotten much smaller but he's paying nothing in income tax because in the state of Texas is the big zero and he saved an enormous amount of money and yet he's he's very obvious that she's a very wealthy man and he is he really symbolic of what's happening throughout all California not just the rich and -- -- -- people all the time -- get me out of there -- another kind of -- -- not an extraordinarily wealthy person but has done well.

Who's retiring said and done someone's house -- seen the -- move in Idaho.

That's one another -- another -- -- yours that's San Diego to Idaho attractive to anybody else in California -- -- what you -- all time but another thing I as you know sort of management for a lot of professional athletes when renegotiate their contracts.

One of the things that comes up if they're gonna go to California it's taxes how much more you gonna pay me to be in the state of California it's a big discussion with.

All the states to -- with California and I also a little bit in New York.

But they talk about taxes that's never happened before so a sports -- Los Angeles -- for example the -- to attract -- stop picture for example that you -- play over the market -- because their gonna pay over a lot of money in taxes when that -- account -- -- Californians without any question that's exactly what -- then also -- the overall market so when other people negotiate we're gonna go to other places where there's no taxes that that comes into because they always -- what other players -- -- -- other cities.

-- social plays a role all right can you really call -- an exodus I mean that implies a Max migration that can you go that far well I don't know that the -- of I don't I don't know you know all the people who -- for what reasons but you'd be insane not to think about leaving -- and I have friends that live there I'm sure you do as well -- the cost of living increase coupled with the amount of money you're paying in taxes.

You'd be a fool not to leave California we have numbers yesterday Wall Street Journal report us at this rate a half million.

-- middle class people middle and upper middle class people exit -- out of California in the past couple of decades are now commit mass a lot of people I love California income but to live there look at that -- -- wild guess what guilty it's little boring after a lot of -- that if and then there's a price tag for that view and it's not worth the top three locations where people are going to -- number one is Texas -- To his Florida that's right three is Scottsdale Arizona people go to -- of the one because California they're going -- an awful lot of these former ball players and people -- on the off season you'll find them in Scottsdale you'll find them in Fort Lauderdale area mainly.

And then -- also find him right where I live in -- there's a lot of listening contracts and Arizona.

The -- very small income tax they're -- they're willing to pay of that income -- this.

Are trying to -- taxes they're trying to be Smart with their money they're just like you -- -- we -- -- do best were more money is gonna do best force you know I was intrigued when you mentioned Tennessee.

Because that is becoming the retirement haven in America is cheap right now attract very cheapest dollar I don't believe there is a state income tax and I'm told -- -- -- of people getting -- that especially northeast -- fleeing the snow and the extremes of winter -- her taxes yeah money will go where it is welcome and that's the story -- money is welcome -- these places.

High tax states losing population to know all low -- State's right to migration is -- -- migrations was going on in into when this happens one other thing of course it puts more pressure on the older people who live there to come up with the money to pay the bills for the tactic for for those taxes so now we have a ripple effect when people leave to put more pressure on the people who -- which means their tax it's gonna go higher.

It's a ripple effect and it's gonna get really ugly you have California governor Jerry Brown has everything's fine -- -- -- sort of sort of Obama look at our GDP number well only the governor is on the Fantasy Island for us that the director had but -- -- you welcome vaccine against Sinatra that you have.

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