A New York Solution for Bailing Out California

The Wall Street Journal reports:

The state's tax system desperately needs reform. Revenues in 2009 are down 27% from a year earlier largely because 1% of taxpayers pay 50% of income taxes and their capital gains have evaporated. These taxpayers have a clear incentive to leave the state -- and they are. One manifestation is the "Incline Village Effect," named after the community on the east side of Lake Tahoe, in income-tax-free Nevada, whose residents get socked if they spend more than 182 days a year in California.

Interesting.