• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

If you make $1.5 million a year…

Cardone illustrated the tax burden faced by high earners in blue states.

“You live in the state of California and you earn a million and a half, New York, New Jersey, Illinois, your gross annual income at $1.5 million means you pay federal income tax of $513,164. State income tax on top of that is $184,557. Social security would be $9,100. Medicare would be $33,450. State disability insurance at $1,600. Your total taxes for the year, dumba‑‑, would be $741,886,” he explained.

Cardone emphasized that while these figures suggest your net income could be "half of what you make," the financial obligations don't stop there, as one might also face employment taxes, sales taxes, and property taxes.

“They ain't done with you. They just keep chopping you up, dumba‑‑,” Cardone remarked.

Read more: Thanks to Jeff Bezos, you can now cash in on prime real estate — without the headache of being a landlord. Here's how

Blue state exodus?

Cardone’s video, titled “BLUE STATE TAXES ARE KILLING YOU DUMB A$$,” highlighted a potential reason for the migration trend of people leaving California.

Data from the U.S. Census Bureau on state-to-state migration flows shows that Florida appeared to be a favored destination for those leaving the Golden State. In 2021, 37,464 individuals moved from California to Florida, and the number increased in 2022, to 50,701.

However, an even more popular destination was Texas. In 2021, 107,546 individuals relocated from California to Texas, and in 2022 another 102,442 people made the same move.

Similar to Florida, Texas also does not impose a state income tax.

Economist Stephen Moore recently described the blue state exodus as “one of the biggest mass migrations in American history,” pointing to taxes as a primary motivator behind the movement.

Neither Cardone nor Moore have offered evidence that income taxes are truly what is behind this migration trend.

What to read next

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.