[ CYPHER CODE #556 ]
High taxes are tolerated until they feel punitive.

[ CYPHER CODE #557 ]
People don’t resent paying taxes. They resent feeling punished for success.

[ CYPHER CODE #558 ]
When revenue depends on flight-risk taxpayers, the system destabilizes itself.

BRIEFING

Grant here. Ah, California... it's the state often revered for having some of the most beautiful landscapes and weather in all of the U.S. However, under that glowing SoCal sun is a little inconvenient fact: taxes. Yep, Cali has some of the highest state income taxes in the country, and it's currently forcing a lot of its wealthiest residents to step back and question if living in The Golden State is really worth the hit to their pocketbooks. Let’s break it down.

California's sky-high income taxes are coming into scrutiny after a short interview clip started making the rounds on X. In the clip, high-profile TikTok influencer Bryce Hall described the moment he realized how much of his income was going to taxes after earning a few million dollars in Los Angeles. He said the combined hit felt like more than half his earnings and described the reaction it triggered: panic, followed by an immediate decision to relocate to Las Vegas, where the state's income tax is at zero. 

SOURCE

Bryce Hall is a TikTok influencer with 23.3 million followers

“I got hit with Los Angeles taxes after I made a couple million and I had to pay 52% of my money to the IRS. 52%. So I was like screw California.”

We live in a country where the government can steal 52% of your money pic.twitter.com/BmEuwilGZf

— Wall Street Apes (@WallStreetApes) December 1, 2025

I mean, honestly, you can't blame this guy for saying "screw California." When faced with a tax bill like that, you can understand why someone wouldn't want to give up half of their income just to simply live in Los Angeles of all places.

And he's not the only millionaire who's jumping ship on California. There are plenty of other millionaires and celebrities who are saying "no bueno" and choosing to live elsewhere, like Mark Wahlberg, who also packed up and moved his family to Vegas, and Sylvester Stallone, who relocated to Florida.

But it's not just influencers and celebs fleeing the state; as a matter of fact, a recent article reported that 239,575 residents left the state in just a year, and furthermore, almost 60% of Californians have considered moving out of the state.

High taxes are a big reason, but not the only one. Issues like high cost of living, limited housing, job opportunities, and more have people fleeing the state.

SOURCE

An Expensive Housing Market

According to Zillow, the average home value in California is about $773,300. Even though prices in some areas, like SoCal, appear to be stabilizing or even dropping, home values in California remain high overall. As a result, many people are leaving California to realize their dreams of homeownership. 

High Taxes

Some people are also moving out of California because of the state’s notoriously high taxes. California has the nation’s highest state income tax rate at 12.3 percent, along with steep sales and gas taxes. These financial burdens have driven many higher-income residents to states like Texas and Nevada, where no income taxes are imposed.

Low Job Growth Rate

As if high house prices and taxes weren’t enough, another reason why Californians are leaving may be the sluggish job market. In recent years, California's job growth rate has been trailing behind the national average. Several factors contribute to this trend, including the state's high cost of living, strict regulations, and the ongoing challenges in key industries such as tech and entertainment. The slow job growth has raised concerns about the state's long-term economic prospects, as businesses and workers alike reconsider their place in an environment where opportunities may be more abundant elsewhere.

Natural Disasters/Wildfires

Anyone paying close attention to California news may be asking, “Are people leaving California because of the wildfires and other extreme acts of nature?” While this isn’t the top reason why people are leaving California, many believe recent events may cause people to move out of the state in the future.

In January 2025, Los Angeles faced devastating wildfires, notably the Palisades and Eaton fires, which burned around 35,000 square miles and destroyed approximately 7,000 homes. The state has seen thousands of fires annually, with significant increases in acreage burned in recent decades. Despite recent wetter seasons, increased invasive grass and weeds pose a larger future fire risk.

Businesses Are Leaving California

We often think about people leaving California, but what about corporations? It may not surprise you to hear that some businesses are also leaving California. Oracle and other notable tech companies are relocating to more tax-friendly states — primarily Texas. In fact, 441 businesses have left California since 2018 and moved their headquarters to a different state. High rent, high taxes, high costs of living for employees, and red tape are just a few reasons cited by the exiters.

DEBRIEFING

Look, a majority of Americans know that California has high taxes, but that's not the point here. What this clip of Hall captures isn’t just outrage, but it’s a pivot point. Tax policy typically lives in the abstract until a bill basically turns success into a penalty that feels personal. When that happens, behavior changes fast.

People tolerate high taxes when they feel they are proportional, predictable, and tied to a system they trust. But that tolerance breaks when the cost suddenly feels punitive. Then the decision to leave isn’t ideological... but honestly it’s practical.

NOW YOU KNOW

When success feels punished, relocation is the answer.