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Rich people are starting to flee America and especially California for tax havens elsewhere. It's not as bad as refugees getting out of North Korea. But it's not good.

The most publicized recent example has been Eduardo Saverin, a co-founder of Facebook, worth approximately $3.8 billion. Thats because Facebooks initial public stock offering hauled in $104 billion Friday.

It recently came out that Mr. Saverin renounced his U.S. citizenship in September and now lives in Singapore. Reported Bloomberg, Besides helping cut tax bills stemming from the Facebook IPO, the move may also help him avoid capital-gains taxes on future investments since Singapore doesnt have a capital-gains tax.

The top U.S. capital-gains tax currently is 15 percent, and could rise to 20 percent next year if President Barack Obama is re-elected and current tax cuts expire. The top California capital-gains tax is 9.3 percent. So, assuming Mr. Saverin lived in California, potentially hes avoiding a 29.3 percent capital-gains tax.

As to income tax, Singapores top rate is 20 percent. By contrast, the top U.S. rate is 35 percent, but could become 39.6 percent if Mr. Obama has his way. Californias top incometax rate is 10.3 percent, but could become 13.3 percent should Gov. Jerry Browns tax increase initiative be passed by voters in November. The possible combined top U.S. and California income tax rate for next year: 52.9 percent. Thats compared with Singapores 20 percent.

And its not exactly like Mr. Saverin or any of us is getting high-quality return on taxes. Especially in California, many roads are crumbling, many schools are poor, the publicemployee pensions are unsustainable, and state and local governments face potential Greecestyle bankruptcies.

People move in and out of countries for reasons other than taxation, Esmael Adibi told us; hes the director of the A. Gary Anderson Center for Economic Research at Chapman University. But there still are two problems, he said. In California especially, the state isnt business-friendly. And its become difficult for people to make a living here.

Unfortunately, Gov. Brown in his tax-increase pitch and Mr. Obama in his campaign of envy of the rich, both are making targets of people like Mr. Saverin.

Sen. Chuck Schumer, D-N.Y., for example, said Thursday that he would push to bar people who give up citizenship to avoid taxes from reentering the U.S.

Contrast that with countries that are flourishing such as Singapore and formerly communist China are more welcoming to those who innovate and invest. If the goose leaves, you dont get the golden eggs.

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Ahead of the tax man