It's Time to Move Where You're Appreciated

Is it time for you to leave?

It’s a question more especially high net worth individuals (HNWIs) are asking themselves these days. Heck, even those with comparatively modest means appear to be sizing things up seriously.

I am referring to phenomena like the California Exodus of recent years. By late 2020, it was in full-swing, according to outlets such as CNBC.? At the time, "135,600 more people left the state than moved here. It’s only the 12th time since 1900 the state has had a net migration loss, and the third largest ever recorded."

Maybe our parents’ generation, or their parents’ generation, could grumble about not being able just pick up and leave a bad economic situation, but in many ways frictions are less for us in the present era. It really could be a great time to move.

Expropriation

The problem with expropriators is that they run out of other peoples’ money. In my experience most folks believe taxation is simply inevitable. They're conditioned to not mind, but as they contribute more and more under further penalties and fines, they often grow more skeptical at how moneys are being used and spent.

Continuing the California example, recent state income tax raises have pushed earners, when added to US federal income tax, well-over 50%. That means Californians are working most of the year to support governments.

Famously, in cities like San Francisco and Los Angeles, once considered among the most beautiful and business-friendly, crime and vagrancy have made them almost unlivable especially when combined with tax hits.

The situation in some cases has grown so dire, Californians who once believed they'd never leave the state are seeking refuge in states like Texas and Florida.

Where to Go

Granted, the decision to leave familiar stomping grounds is not easy. And maybe economic factors aren't that dire when compared to other quality of life issues. California, again sticking to the main example, has a lot to offer (or did).

But it never hurts to check out new spots.

Over the last two years in the US, what state you lived in more or less determined your ability to earn a living. California was locked down, consumed with variations on an interior vaccine passport theme, and kept its school-aged children from attending classes in person.

Compare that with Florida over the same time period.

At it happened, I traveled between the two states during the pandemic. It was night and day. California was static, closed; Florida was moving, vibrant, alive. Same country. Same pandemic. Roughly similar populations. But Florida remained relatively free.

Competition

Cities with the Lowest Tax Rate by Intuit (graphic above) gives us a nice starting point to look further into leaving. They ranked the top 10 cities in the US.

Rates hover between a tax of slightly over 10%, to as low as 3% depending upon how your assets are configured (lots of benefits for HNWIs). Many of the states eschew income tax altogether, such as Florida and Nevada, and what taxes they do have appear to be quite reasonable.

And as one might expect, many of the states with the lowest penalties on producers are among those with the most booming cities. 15 Fastest Growing Cities In The US by Rocket Mortgages shows nearly half are in Texas and Florida. Capital often goes where it is treated best.

They're competing.

My suspicion is this trend is going to continue for a while. Places we might've snubbed not so long ago will work to earn our eye and eventual attention. They'll attract and build services and cultures we want, displacing those states who do not value productive citizenry.

Voice and Exit

Economist Albert O. Hirschman wrote a wonderful treatise on the trend we're seeing in the US (and maybe soon around the world). In his seminal work Exit, Voice, and Loyalty (1970), Hirschman argued one way populations 'vote' is through migration, foot movement.

The ultimate freedom is not taking to the barricades, raising fists and stomping around. No. To leave, to shrug in perhaps the Randian sense, says much more than crotch-grabbing hoodlums wearing face coverings, throwing dust bins at Starbucks' windows, ever could.

Leave. Exit. Move.

Starve the parasites. Deprive bureaucrats of their life's blood: your productivity. Go instead where you're respected, where your toil, risk, sacrifice, and prudent thinking are appreciated. Seek out others of like-mind.

They're out there. And options for finding them and collaborating together meaningfully are increasing.

Value yourself and being alive first. You're only guaranteed this one life. You spend a lot of it trying to achieve, attempting to build wealth, and to make the world a better place. Spending much of it stymied by petty politicking and minders and nannies is no way to live these precious years.

And I mean it.