Billionaire bond manager Gundlach suggests he could leave California over taxes

[September 28, 2020]  By David Randall

NEW YORK (Reuters) - Billionaire bond fund manager Jeffrey Gundlach suggested in a Twitter post late Saturday that he may move from California to a lower-tax state if Sacramento raises taxes on the wealthy.

"Elon Musk, Joe Rogan and Ben Shapiro, to name just a few, are leaving California to escape incompetent governance. The "response" from Sacramento? Wealth and massive income tax increases on job creators (AKA “the wealthy”). Should I align with 3 smart guys, or Sacramento? Hmmm," Gundlach, the chief executive officer of asset manager DoubleLine, wrote.

Democrats in California have proposed raising the highest tax rate to 16.8% from 13.3%. The move would follow other states that have focused on raising taxes on the highest earners. Lawmakers in New Jersey reached a deal Sept. 17 to raise rates on incomes above $1 million to 10.75% from 8.97%.

Previous income tax rates on high earners in California have not been shown to lead to an exodus of residents from the state, a Reuters study from 2012 found. 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)

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