Why Working Class People are Moving from CA to TX
Rising California Income Inequality
California currently ranks fourth highest in the country in terms of income inequality, and second in fastest growing income inequality. Comparatively, Texas ranks number 39th in the nation in terms of income inequality. About one in every five Californians live below the poverty line, as well as over one million who are living in “energy poverty”. This means that they lack access to modern energy services due to high energy costs and low income households.
Income tax
The income tax in California is 13.3%, making it the highest in the entire country. And it’s only on track to increase, with the state looking to raise it to 16.8%. California’s corporate tax is 8.84% and their sales tax comes 6.25%, Comparatively, Texas’s income tax is 0%, our corporate tax is 1%, and our sales tax is 6.25%. With these huge discrepancies, it’s no wonder that working class people are making the move to Texas.
Lower cost of living
The overall cost of living is a whole 50% higher in California compared to Texas. Although the minimum wage is higher in California, the astronomical cost of living makes it difficult for some working class people to earn a living wage, even with a higher minimum wage. In CA, to afford median rent in LA, renters would need to make $48 dollars/ hour. In Texas, however, the overall cost of living is much cheaper and allows more opportunities for middle to lower income families to be homeowners.