Eulogy for California: The Golden State That Taxed Itself to Death (And Then Got Fleeced Anyway)
This post is an entry with a "twist" to the April 2026 ActiveRain Challenge: Why Do You Love Where You Live?, hosted by Carol Williams and Margaret Rome.
Ladies, gentlemen, and the 229,077 residents who quietly slipped out the back door between July 2024 and July 2025, we gather today to bid a not-so-fond farewell to California — the once-shining beacon of surf, stars, and “I moved here for the weather” excuses.
The Golden State didn’t just fade away. It was murdered — by a perfect storm of fraud, sky-high taxes, pump prices that could fund a small country, and a cost of living so brutal it made people voluntarily move to Texas. Sixth year in a row, folks. U-Haul literally crowned California the “thanks but no thanks” champion of America.
Let’s start with the fraud — because nothing says “we’ve got this under control” like the Employment Development Department (EDD) turning unemployment benefits into the world’s biggest ATM for criminals. During the pandemic, California lost an estimated $20 billion to $32.6 billion to fraudulent claims, possibly one-third of the nation’s UI fraud. They’ve clawed back about $6 billion so far. The rest? Probably funding someone’s yacht in a country that doesn’t extradite.
It was so bad that the feds are still investigating, the state auditor called it a “high-risk” disaster, and Californians watched in real time as the system paid out billions to fake identities faster than you could say “identity theft ring.” The Golden State didn’t just have a glitch — it had a glitch with a beach house and a Lamborghini.
Then came the taxes. Oh, the taxes. California boasts the nation’s highest top state income tax rate at 13.3% (with an extra mental-health-services surcharge that somehow never quite fixed the tent cities). No wonder high earners and businesses looked at Texas and Florida — zero state income tax — and said, “See ya, wouldn’t wanna be ya… actually, yes we would.”
And gas? Sweet, merciful gas. As of early April 2026, the average price in California is hovering around $5.89–$5.90 per gallon for regular unleaded, while the national average sits at about $4.06–$4.08. That’s not a price difference; that’s a hostage situation. California’s gas tax and fees alone top 70 cents per gallon (the highest in the U.S.), plus special “cleaner-burning” fuel formulas, refinery limits, and environmental add-ons that somehow add up to an extra $1.80 at the pump.
You know you’ve lost the plot when filling your tank costs more than your first apartment did in 2005.
So why did they leave? The usual suspects: housing prices that make a studio in San Francisco cost more than a mansion in most red states, crime that turned “defund the police” into “please fund some police,” homelessness that turned sidewalks into open-air encampments, and regulations so thick you need a permit to breathe. Lower- and middle-income folks bailed first for affordability; higher earners followed for the tax savings. Even the PPIC survey showed hundreds of thousands citing housing costs alone.
California, you were the dream — Hollywood glamour, tech billions, In-N-Out at 2 a.m. But you became the cautionary tale: a state that taxed its golden goose until it flew to Austin, defrauded itself into the history books, and charged $6 for a gallon of self-serve regret.
Rest in peace, old friend. Or at least rest in slightly lower property taxes somewhere else. The rest of us will be over here, waving goodbye from the cheaper side of the border — with full tanks and lighter wallets.
But hey, at least the weather’s still perfect… if you can afford the view.
I am a California native and have lived here my entire life. I've witnessed both its highs and lows, and I sincerely hope that brighter days are still to come.
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