Some of us are old enough to remember when California was the place to be. It was a place with a great climate, great scenery, beautiful people, and endless opportunities. It was a place that elected Ronald Reagan as governor twice and then voted for him as president, again, twice. I even considered heading that way myself at one point, during those years, but ended up in uniform instead. Still, as recently as the 1980s, California was a happening place.
But, as the old song goes, that's all over now, baby blue. Now, along with skyrocketing energy and real estate prices, along with onerous regulations, wealthy Californians - the people who drive any economy - have another reason to leave, that being a proposed billionaire's wealth tax
And leaving, they are - to Las Vegas.
High-net-worth Californians are increasingly setting their sights on Las Vegas as they look to reduce their tax burden and protect their finances as a proposed wealth tax looms in the Golden State.
New data shows that by the end of 2025, more than 23% of Realtor.com listing views for Las Vegas homes came from Los Angeles, making it the leading source of out-of-market interest.
San Jose accounted for more than 8% of views, while Riverside, California, made up nearly 4%, according to Realtor.com.
"Migration from California to Las Vegas may reflect both tax considerations and the meaningful affordability gap between the two markets," Realtor.com senior economic research analyst Hannah Jones told FOX Business in an email.
In other words, Nevada has lower taxes and cheaper housing. And there's more driving the productive out of the once-Golden state.
First, housing costs. The spiraling cost of real estate in California, in general, and the big cities in particular, is partly driven by demand, yes; perhaps more so now that the remaining people in that state who can afford housing there are increasingly wealthy urban coastal elites, who have enough money to be sheltered from the consequences of leftist policies they push - but who are below the "billionaire" mark. That's relevant too, and I'll go into that in a bit. But another large part of what makes California housing unaffordable is the endless permitting requirements, onerous zoning, and land use regulations.
Second, energy costs. Key among these concerns are gasoline prices, which I covered earlier on Monday:
Read More: Gasoline-Starved California Now Turns to Distant Bahamian Supplies
California has the highest gas prices in the nation, not least of the reasons for which is taxation. Now, as I noted in the article linked above, California is having to import gasoline, some of which is coming from the Bahamas via the Panama Canal, because the oil companies are abandoning the state and the refineries that produce all of California's plethora of required blends are closing up shop.
And, third and finally, a proposed wealth tax on billionaires. This may be the dumbest idea of all.
The migration trend also comes as California considers a proposed wealth tax that would impose a one-time 5% tax on the net worth of residents with assets exceeding $1 billion.
The measure, backed by the Service Employees International Union–United Healthcare Workers West, would need roughly 875,000 signatures to qualify for the November ballot.
California Gov. Gavin Newsom has opposed the measure, warning it could push high earners to leave the state.
"While policy discussions like a potential wealth tax may influence timing for some high-income households, the ability to convert expensive coastal real estate into greater purchasing power in a lower-cost market is likely also a significant driver," Jones told FOX Business.
Governor Newsom, with a completely uncharacteristic rush of brains to the head, is opposing the measure, but if it can get on the ballot, it may very well pass - and we should note that these people are the ones most able to pack up and leave at a moment's notice, taking their businesses, their money, the economic activity they generate and the tax revenue they pay in with them.
In short, this tax may well be the proverbial nail in California's fiscal coffin - and it's not like the impeccably coiffed Governor Newsom has a sterling track record on economic issues, despite him (accidentally?) getting this one right. At the federal level, wild-eyed ravings by people like the desiccated old Bolshevik Senator Bernie Sanders (I-VT) aside, a wealth tax would be unconstitutional. But at the state level? I wouldn't be too surprised to see this actually happen.
Read More: Newsom’s $450 Million 911 Debacle Reminds Why We Oppose Federal Welfare
As I pointed out earlier, the California Democrats keep handing California Republicans the arguments they need to begin to turn this around. Just the gas prices alone, one would think, would sink the political fortunes of the party that caused them. Then again, this is California, home to a lot of wealthy coastal elites who are sheltered by their wealth from the ill effects of the very proposals they favor. It's also home to an ever-growing dependency class, who are paying the horrible gas prices but are also being wooed by Democrat promises for a never-ending supply of free Schiff, funded by other people's money. And, finally, California is home to a shrinking middle class, more and more of whom are starting to look to the exits - or maybe, to a different political party. Can we hope?
California was once a great state. No longer. Can it be brought back from the brink? That's up to the voters - and to how well California Republicans can play the hand they are being dealt, right now. It's make-or-break time. Meanwhile, it looks like Nevada is getting quite the influx of brilliant people, new jobs, and the economic activity that comes with all that.
This seems appropriate.
