theThe CEO of Doubleline Capital tweeted an invitation to realtors in “low-tax, well-governed” states to call him, as he openly considered leaving his base in Los Angeles.
In a series of tweets, sent to the West Coast on Saturday night, the billionaire investor said public figures including Elon Musk “are leaving California to escape incompetent governance.”
Like many states that need more income due to the economic ravages of the global pandemic, California is considering raising taxes for its wealthier residents. Sacramento Democratic lawmakers have proposed increasing the maximum rate from 13.3% to 16.8% for income above $ 5 million, with retroactive changes to Jan. 1.
New Jersey lawmakers this month approved a tax rate hike from 8.97% to 10.75% for those with income above $ 1 million and there is a voting measure in the ‘Illinois calling for higher levies on the rich. Meanwhile, states such as Florida, which has no income tax, are seeing increasing interest from hedge fund managers and other wealthy people in relocating.
Gundlach wouldn’t be the only one to leave California. Parts of Silicon Valley have moved to Nevada and Texas as they accept work from home. Canyon Partners, meanwhile, the $ 24 billion hedge fund firm, isplanning to set up a new office in Texas next year to escape what its executives see as high taxes, congestion and fire hazards in southern California, Bloomberg reported on Friday.
– With the help of Pierre Paulden
(Adds details of the California tax proposal in the fourth paragraph.)