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California Billionaire Caruso Stands Firm Amidst State’s Exodus

As the West Coast experiences a wave of migration to states like Texas and Florida, one Los Angeles billionaire is steadfast in his commitment to California. Rick Caruso, founder and Executive Chairman of Caruso, believes that despite the challenges facing the Golden State, there is hope for a turnaround.

In a recent interview on “Cavuto: Coast to Coast,” Caruso expressed his love for California, calling it the greatest state in the union. However, he acknowledged that there are significant issues plaguing the region, including crime problems and a growing homeless population.

“I think it’s all fixable,” Caruso affirmed, offering a glimmer of hope amidst the concerns. He pointed out that the exodus from California is not solely due to high taxes, as commonly believed, but rather a combination of factors affecting the overall livability and safety of certain areas.

“The issue in California isn’t as much taxes, and clearly people leave California because of taxes. I think the issue is people are willing to pay the taxes as long as they’re living in a livable, safe community and they feel like they’re getting the benefit of paying higher taxes,” he explained.

Indeed, the state’s high taxes have been a topic of debate, with California’s state income tax currently sitting at 13.3%, and the top 1% of Californians contributing significantly to the state’s revenue. However, Caruso emphasized that issues beyond taxes play a crucial role in driving people away. Among them are the homeless crises in major cities, rising crime rates, and an overregulated business environment.

California has experienced a population decline of 0.3%, a first for the state, with 117,552 people leaving between Jan. 1, 2021, and Jan. 1, 2022, according to data from the state’s Department of Finance.

H2: Homelessness and Crime: Critical Challenges for California

One of the key factors influencing the population movement is the pervasive issue of homelessness in cities like San Francisco and Los Angeles. According to data from the Benioff Homelessness and Housing Initiative at the University of California, San Francisco, California’s homeless population accounts for nearly a third of the nation’s homeless.

Caruso highlighted the stark contrast within Los Angeles County, where some areas remain clean and safe, while others are plagued by a growing number of homeless individuals. He emphasized the need for accountability at the city level to address these challenges effectively.

Additionally, crime has emerged as another significant concern driving people to reconsider their stay in California. Caruso pointed out that leniency towards criminal activities sends the wrong message and contributes to an environment of fear and insecurity.

San Francisco experienced an alarming 80% surge in violent crime earlier in the year, leading to public safety concerns. Similarly, Los Angeles saw an increase in serious crimes on public trains and buses in 2022, including aggravated assault, murder, and rape.

H2: Leadership and Accountability

Despite these challenges, Caruso remains optimistic about California’s future, emphasizing the importance of leadership and decisive actions by elected officials. He praised Governor Gavin Newsom for his efforts but placed accountability for the issues squarely on the shoulders of local officials.

“I think Governor Newsom, given what he’s dealing with, is doing a really good job. I think the issue of the homelessness and the crime is at the local level, and you really can’t pin that on the governor. You’ve got to look at the mayors, the city councils, the supervisors that are in charge of reducing crime and homelessness,” Caruso said.

In conclusion, while California faces significant challenges that have prompted some to leave, Rick Caruso believes the state is not beyond repair. It will require strong leadership, smart decisions, and a collective effort to address issues such as homelessness and crime. The road ahead may be tough, but Caruso’s unwavering faith in California’s potential for transformation remains a beacon of hope amid uncertain times.

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