Proof of the concept that people vote with there feet comes once again from California. In the article Plunge in Facebook Shares Has California Seeing Red some background details were given showing the exodus of high earners from a high tax state.
According to the article, the California Franchise Tax Board reported that “the number of upper bracket taxpayers, with $500,000 or more in annual incomes, dropped by a third from 2007 to 2009.” And that “as of the 2009 tax year, California listed just 98,610 California tax returns with adjusted gross income of $500,000 or more, down 32.5% from the 146,221 in 2007.”
For specific details on “voting with your feet”, Gap Between High Tax And Low Tax States Widening makes the point that “California is losing its wealth producers year after year.” There’s lots more great evidence in this article.