FILE PHOTO: Jeffrey Gundlach, CEO of DoubleLine Capital LP, presented at the Sohn Investment Conference 2019 in New York City, USA on May 6, 2019. REUTERS / Brendan McDermid
September 27, 2020
By David Randall
NEW YORK (Reuters) – Jeffrey Gundlach, manager of a billionaire pension fund, suggested in a Twitter post late Saturday that he could move from California to a lower-tax state if Sacramento raises taxes for the rich.
“Elon Musk, Joe Rogan and Ben Shapiro, to name a few, are leaving California to escape incompetent governance. Sacramento’s “answer”? Prosperity and massive income tax increases for job creation (AKA “the rich”). Should I line up with 3 smart guys or Sacramento? Hmmm ”, wrote Gundlach, the managing director of the asset manager DoubleLine.
California Democrats have proposed raising the highest tax rate from 13.3% to 16.8%. The move would follow other states that have focused on raising taxes on the highest earners. New Jersey lawmakers reached an agreement on September 17 to increase income rates above $ 1 million from 8.97% to 10.75%.
According to a 2012 Reuters study, previous income tax rates for high-earners in California did not result in any exodus of residents. https://www.reuters.com/article/us-california-tax-flight/super-rich-flight-from-california-not-so-fast-idUSBRE8AH07S20121118
(Reporting by David Randall; Editing by Diane Craft)
This article originally appeared on www.oann.com