Why Are So Many People Leaving California for Florida?

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Many residents of California are leaving and relocating to Florida. Though there are many things to attribute to the many relocations, there are 4 key traits being blamed for the increase of people packing up and leaving. Jim Doti and Raymond Sfreir looked into the large number of relocations and used a statistical technique called "multiple regression analysis" to find out why people are leaving the Golden State and heading over to the Sunshine State. State regulations, state and local taxes, climate, and job growth are all key contributors as to why many are choosing to leave California, according to Doti and Sfreir.

Recently, the Walt Disney Co. announced that 2,000 "Imagineers" would be leaving California and relocating to Florida. Chairman of Disney Parks, Josh D'Amaro, discusses reasons for the move by mentioning in an open letter to employees that Florida's "business-friendly climate and its lower cost of living with no income tax" greatly contributed to the decision. Many companies are seemingly following the Walt Disney Company's lead and leaving California to conduct business.

Think about this - in 2011, California's population grew by over 350,000 people, fast forward 10 years to 2021, population growth in California dropped to virtually zero. On the topic of local and state taxes, the Tax Foundation's State Business Climate Index placed California as the second highest in the nation when it comes to state and local taxes, while Florida is placed in the fourth lowest position.


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