Yahoo Finance Grant Cardone Claims California Lost $1 Billion After His 2012 Exodus To Florida
Real estate magnate Grant Cardone said California lost $1 billion in revenue when he fled California for Florida in 2012.
He moved in 2012 when California raised state income taxes from 10% to 13.3%.
"After living there 25 years, we sold our home and real estate holdings and looked for a friendlier business environment," Cardone wrote in a June 12 post on X.
At the time, Cardone's companies employed a dozen people and were making about $3 million per year, with most of the income coming from outside the Golden State. Cardone said he never objected to paying his share, but California continued to raise taxes and misuse the revenue.
Don't Miss:
If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.
"That was 2012, and it's only gotten worse," he posted. "I would still be in California today, and they would have benefited from the rest of the story."
Cardone and his wife, Elena, relocated to Miami in 2012, investing all of the tax savings they realized in their consulting business. The couple sold their California real estate — keeping one small property in Malibu — and invested in Florida to grow their fledgling real estate company.
Since then, the consulting business has grown from six employees to 1,000, revenue increased from $10 million to $650 million, and the company now has 15,000 rental units and about 500,000 square feet of office space valued at $5 billion that generates $75 million in property taxes every year.
Trending: Boomers and Gen Z agree they need a salary of around $125,000 a year to be happy, but millennials say they need how much?
"My story demonstrates how lower state taxes and favorable economic policies can stimulate business growth, boost employment and contribute significantly to the local and national economy," Cardone posted. "Advocating for more competitive tax policies and tax intelligence can lead to similar success stories, benefiting businesses, communities and the national economy alike."
By Cardone's calculations, California has lost — and Florida has gained — $75 million in property taxes, $10 million in employee taxes, $5 million in company sales taxes, $2.7 million in employee sales taxes for an annual loss/gain of $92.7 million, which works out to $1.1 billion over 12 years.
It's not just California that's driving people to more business-friendly states. Investors from New York, New Jersey and Illinois are relocating to states like Florida, Texas, Tennessee and Arizona "where businesses are rewarded for taking a risk, laws are enforced and property rights are respected," Cardon said.
"States that continue to raise taxes and mismanage revenues will continue to see the most productive in society move to states where taxes are lower and friendlier to business and investments," Cardone wrote.
Keep Reading:
Private credit offers up to 20% APY to potential accredited investors looking to capitalize on this growing asset class.
Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. Investing in its booming real estate market has never been more accessible.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Grant Cardone Claims California Lost $1 Billion After His 2012 Exodus To Florida originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
