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Elon Musk moves to Texas

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Re: Elon Musk moves to Texas

#461

Post by toast0 »

jboydyhacker wrote: post #415
toast0 wrote: post #284

Earlier quoted context omitted.

If you have RSUs that were in while you were working in California or a resident of California, the Franchise Tax Board claims a portion of the income as California source when (if) they finally vest. That could be years later, when you're no longer a resident. If you move from California to another country, and are subject to US Federal Income tax, and don't qualify for an exemption, the Franchise Tax Board still co…

This looks like you are making stuff up. I don't think it's a small motivation of Musk to escape the tax rate when he starts to sell his shares. Just because he vested them while in CA - if he's a resident of Texas when he sells I don't think he owes CA a dime.

I wasn't responding specifically to Musk's tax burden, but the question of why would someone who moved out of the state still be paying taxes to the state several years later.

It depends on what type of shares/options/equity grants, and what's still vesting, and what isn't.

ISOs that are exercised in a qualifying disposition are taxed based on residency on the day of exercise.

RSUs that vest while you're a resident are taxed on vest day, and any capital gains from that are taxed based on residency on the day of the sale, yes.

RSUs that vest while you're not a resident are taxed on vest day, and a portion of the income will be california source if you worked in California during a portion of the vesting period, or if you were a residing during a portion of the vesting period.

https://www.ftb.ca.gov/forms/misc/1004.html#E-Restricted-Sto...

Re: Elon Musk moves to Texas

#462

Post by 7thaccount »

S_A_P wrote: post #158

Pretty interesting to see this move makes people so salty. There does seem to be a trend of people fleeing California, I dont know enough about the situation out there to comment on whether or not its valid. I suspect something must be going on for several high profile folks moving out. And before you bash Texas, its not perfect. But its pretty diverse, and it seems that folks with opposing viewpoints can still coexi…

Sure. Extremely high rent, rolling power brown outs (electricity), massive forest fires...etc.

Every area has its unique challenges and benefits. For example, there are many jobs in California in a variety of areas including tech.

Re: Elon Musk moves to Texas

#463

Post by bdcravens »

cloverich wrote: post #351
njharman wrote: post #318

Earlier quoted context omitted.

no texas is horrible, esp Austin. Please don't move here.

^ an Austin tradition typically reserved for the yearly SXSW festival, when the city is flooded with tourists during a time that has nicer-than-usual weather. It is also traditional to develop a cruel sense of joy when people begin complaining about how hot it is in early July, as you tell them it is about to get, somehow, _much_ hotter.

Houston in August is pretty much just misery. That said, we're pretty wimpy in the 40s and acting like it's the ice apocalypse when it's 30, so we earn similar ridicule.

Re: Elon Musk moves to Texas

#464

Post by nemo44x »

ddoolin wrote: post #429
boringg wrote: post #171

Earlier quoted context omitted.

California still has every viewpoint that is imaginable though there does seem to be less space for far right. What's making everyone salty about Elon leaving is there was considerable amount of people who helped him build up in the state (i.e. state benefits, staff who worked incredibly hard for many years, consumers who bought his cars [drive in the bay area]) and he's peacing out, with a slap in the face to everyo…

Genuine question: how do states like Texas, Florida, etc. get by without taxing income? Do they not need that money for their operations? What is the difference between their government and California's? I figure Florida makes it up with their tourism industry but Texas decidedly does not have that.

Property taxes. This also means more taxes stay local and in the communities paying them. Of course there are opposing viewpoints on if this is good or bad. But the state still gets a good portion of those taxes.

On the east coast some of our states have high state income tax AND high property taxes (and property is very expensive) and I’m not sure the services or infrastructure are any better than in states like Texas. At least in California your property tax is locked in, which has its own problems of course.

At least where I live, a good deal of today’s tax revenues go to pensions to people that retired to Florida or Arizona (or some other tax free state) in their 50’s. I think Texas has avoided this trap many states are in today.

Re: Elon Musk moves to Texas

#465

Post by ranman »

S_A_P wrote: post #158

Pretty interesting to see this move makes people so salty. There does seem to be a trend of people fleeing California, I dont know enough about the situation out there to comment on whether or not its valid. I suspect something must be going on for several high profile folks moving out. And before you bash Texas, its not perfect. But its pretty diverse, and it seems that folks with opposing viewpoints can still coexi…

I think he's pretty tired of being used as a punching bag by various elected representatives.

He's not a perfect person by any stretch but he's been a net benefit and gain for CA, the US, and maybe the world?

The guy constantly gets called out for his twitter shitposting and people think he's some evil overlord... these same folks don't seem to care at all when their elected reps sell them out w.r.t housing, development, healthcare.

Re: Elon Musk moves to Texas

#466

Post by threeseed »

beambot wrote: post #235
itsoktocry wrote: post #199

Earlier quoted context omitted.

> Or, framed differently, California is looking for deep pockets to bail out their failing budget rather than adjust their policy to match what they can afford. You mean the budget that included tax abatement and subsidies for his factories and the people who buy his cars?

You mean abatements & subsidies required to push "clean" vehicle policies that are among the most aggressive in the world? Without Tesla & CA's policies, auto electrification would be at least a decade behind what it is today... Being at the forefront of environmental policy has real costs.

Paris climate targets will have done far more to push EV forward than Tesla/CA.

Most governments e.g EU, UK, China all looking to curtail/ban ICE cars within the next few decades. And of course this has resulted in car manufacturers rapidly pushing EV cars.

Re: Elon Musk moves to Texas

#467

Post by yurishimo »

s1artibartfast wrote: post #330
glitchc wrote: post #252

Earlier quoted context omitted.

This doesn't make any sense. Why is the quality of life poorer in California compared to Texas when California has: Better schools across all grades, better universities and better weather? Perhaps there are other factors? Do demographics play a role perchance? From Wikipedia: 1) According to 2018 US Census Bureau estimates, California's population was 59.5% White (36.6% Non-Hispanic White), 14.7% Asian, 13.8% Some O…

The average income in California 25% higher than Texas (60k vs 48k), but taxes and costs are more than 25% higher in California. The typical home value of homes in California is $599,159. [1] The typical home value of homes in Texas is $224,065 California sales tax rate of 7.25% is higher than that of any other state, and its top marginal income tax rate of 13.3% is the highest state income tax rate in the country. T…

Just a nitpick, while Texas' state wide sales tax is 6.25%, every local municipality is allowed to tax up to 2% for their own revenues. I have yet to make a purchase anywhere in the state in my entire life and not been charged the full 8.25%.

Texas also exempts grocery store food purchases from sales tax, barring a few specific luxury categories, so that's something to keep in mind as well if you have a large family. Saving 8% on food could be a decent chunk of change for a lot of families. Restaurant food is still taxed at the normal rate.

Re: Elon Musk moves to Texas

#468

Post by jdhn »

JKCalhoun wrote: post #311
ourcat wrote: post #186

Earlier quoted context omitted.

You probably get far more for your money though. (Property/land-wise) I also remember reading stories years ago about CA/SV businesses that had offices up in Colorado as a back-up for when 'The Big One' hits.

Yes, ironically property taxes are much higher in Texas than California. And toll roads, etc... In short, the money has to come from somewhere — if not from income tax then it will be from somewhere else.

>ironically property taxes are much higher in Texas than California.

The rate may be higher, but the total paid will probably be less.

Re: Elon Musk moves to Texas

#469

Post by gonehome »

danans wrote: post #453
gonehome wrote: post #213

I wish public rhetoric was less combative/twitter-like and more collaborative. Elon has built incredible companies doing incredible things. He's also made some stupid comments re: covid. SV political hostility towards technology companies and employees is frustrating. I wish the government was more aligned with helping these companies grow and things weren't treated as if they were so zero-sum (when they're not). I a…

In general, you are right, the Twitter-sphere is a cancer on civilized discussion. That said, Elon Musk is an active participant and influencer of "F*ck X" culture on Twitter, so he hardly gets a pass when others use that same rhetoric on him. > why can't people in government behave better than this? Likewise, why can't Elon Musk behave better? The answer: Acting the way he does publicly is part of his marketing tact…

Yeah I agree on both counts.

I do think people in government should be held to a higher standard. If only for the public’s benefit.

Re: Elon Musk moves to Texas

#470

Post by rrrrrrrrrrrryan »

ddoolin wrote: post #429
boringg wrote: post #171

Earlier quoted context omitted.

California still has every viewpoint that is imaginable though there does seem to be less space for far right. What's making everyone salty about Elon leaving is there was considerable amount of people who helped him build up in the state (i.e. state benefits, staff who worked incredibly hard for many years, consumers who bought his cars [drive in the bay area]) and he's peacing out, with a slap in the face to everyo…

Genuine question: how do states like Texas, Florida, etc. get by without taxing income? Do they not need that money for their operations? What is the difference between their government and California's? I figure Florida makes it up with their tourism industry but Texas decidedly does not have that.

Compared to California, most states depend less on income taxes and more on property taxes, which is part of the reason why property prices are higher in California.
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