Tax Shock Drives ESPN Star Out

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Stephen A. Smith says California taxes would have eaten most of his paycheck, and he left to keep more of his money.

Story Snapshot

Stephen A. Smith blasted California’s high taxes and described moving to avoid them.
He cited near-40% federal rates plus over 13% in California for top earners.
California’s official top state income tax rate is 13.3% for very high incomes.
Experts stress that effective tax rates are lower than the top marginal rate.

What Stephen A. Smith Said About Leaving California

Stephen A. Smith told interviewers that high taxes pushed him out of California. He said top earners face federal income taxes near 40% and more than 13% from the state, which he framed as taking “too much” of his pay. He also said he believes no hard-working American should take home less than half their income after taxes, and that his stance on taxes is the part of him that is conservative. His remarks triggered fresh debate over state tax policy and mobility.

Smith’s claims struck a nerve because they match a common fear among high earners: that stacking federal, state, and other levies can squeeze take-home pay. He pointed to California’s rate for top incomes as the key pain point. He argued that when you add everything together, the cut feels punishing. He tied that to a wider concern that government grows costs faster than it delivers results, a view shared by many across party lines who feel squeezed by rising bills.

What California Law Actually Charges at the Top

California’s top statutory income tax rate is 13.3 percent. That figure includes a 12.3 percent top bracket plus an extra 1 percent on taxable income above one million dollars for mental health programs, according to multiple tax summaries that cite state schedules. This top rate applies only to income above the threshold. Earlier income is taxed at lower rates in steps. That structure means only part of a top earner’s income faces the highest rate.

Tax guides also stress a key idea: the effective rate, which is total tax divided by total income, is lower than the top marginal rate in a progressive system. Deductions and credits can lower it further. A widely used explanation notes that most middle-income filers in California pay a much lower effective rate than the headline top rate, even after standard deductions. This gap between marginal and effective rates often drives confusion in public debate.

How Smith’s View Fits a Bigger Migration Debate

Researchers have studied whether high state tax rates push wealthy people to move. Some peer-reviewed and administrative data studies find only small changes in migration among top earners after California raised rates in the past, suggesting limited “tax flight” at the population level. Other research finds higher exit rates among the very highest earners and measurable losses of taxable income following rate hikes, showing that responses differ across income levels.

Public views inside the state are split but lean negative on the burden. A major California survey reported that a majority of residents said they pay more than they should in state and local taxes, while a sizable share said the amount felt about right. That mix mirrors national frustration across the spectrum. Many Americans believe the system favors insiders and wastes money, while families face high costs for housing, energy, and daily life. Smith’s story taps into that shared frustration.

Why This Matters Beyond One Celebrity

High-profile moves by celebrities or athletes get attention because they are easy to grasp. They also fuel a broader fight over what states should charge and what people get in return. California leaders say strong services and opportunities justify higher rates. Critics say the state taxes too much, drives out jobs and investment, and then demands even more. The core issue is trust: people want to see value for the taxes they pay, and many feel they do not.

Stephen A. Smith says he was warned by his estate planners to leave California every weekend because the government would TRACK his phone calls, then uses that data to collect MORE taxes.

He thought they were kidding. Then he got his tax returns. They weren’t.

What’s happening… pic.twitter.com/ZIEYrH45R7

— The Vigilant Fox 🦊 (@VigilantFox) September 9, 2026

For readers trying to square the numbers, here is the bottom line. Smith’s federal-plus-state stack reflects real top marginal rates, but his personal take-home claim blends many items and does not map to the effective rate most filers pay. California’s top rate is 13.3 percent, not 13.6 percent, and it hits only dollars above a high threshold. Still, for very high earners, the combined bite can feel steep. That tension keeps the tax flight debate alive.