Skip to comments.Taxing The Rich, Wealthy Avoid New Jersey, Study suggests high-tax states pay a stiff price
Posted on 02/04/2010 6:48:13 PM PST by Coleus
A new study suggests that states that target the rich for tax hikes may pay a stiff price. It's not just that some wealthy people may flee those states. The bigger problem is that they won't move there. At least that's the implication of a new analysis of wealthy folks' movements into and out of New Jersey from 1999 through 2008. In all, the state suffered a $70 billion net outflow in wealth from 2004 through 2008, compared with a $98 billion net inflow in the prior five years. The Garden State's reversal in fortune was due to a large drop in the number of wealthy households entering the state and a moderate increase in the number of wealthy households leaving.
"I hadn't expected to see such a big decline in wealthy people moving in," said study author John Havens, senior associate director of the Center on Wealth and Philanthropy at Boston College. The loss in wealth in New Jersey coincides with a notable state tax hike. In 2004 New Jersey was one of the first states to adopt a "millionaires" tax, imposing an 8.97% rate on income over a half-million dollars. The major change in New Jersey wealth came from large reductions of immigration to New Jersey by wealthy households from foreign countries, New York state and Pennsylvania. Also the number of affluent and wealthy households who left the state rose while the number of less wealthy households who left dropped.
(Excerpt) Read more at forbes.com ...
They are just going to have to mandate that wealthy people live in these states.
“A new study suggests that -————”
Because the rich are seldom stupid about money.
Actions have consequences.
The time it takes me to write this response is all the time it takes for a small business to transfer all of their business and personal money out of a high tax state into a competitive state.
See what I did there?
45 seconds flat, no money for you.
You think that’s bad? The spin in NJ today was that it’s not really anything to be concerned about. It was 70 billion in wealth that left.
“We don’t tax wealth, we tax income,” said David Rosen, budget and finance officer for the Office of Legislative Services, to a Senate budget commission...
This is not satire, It’s New Jersey
They put special taxes on the rich and then were surprised that they moved away? Only a liberal would be so stupid.
Soak the rich, all will be poor.
Also ? in the time you write this, how many businesses have gone out of business ?
Food for thought.
Unfortunately, the reality is that the more wealthy people they drive out the fewer votes against them. The more poverty they create the more votes for them. Basic democratic politics here. Will it hurt the state in the long-term ? Of course but these are politicians, they only care about being re-elected.
Drowning people can only try diving deeper in the hope of finding air for so long. Eventually, physics wins.
Yeah, after all is poor, food will only be “ a thought “
If I had a dollar every time I heard the statement “follow the money”......
Does anybody know how to spell Duh in 3 letters or less?
Yeah, and those of us in the middle class are caught...in the middle.
Then why did the wealth bother leaving, genius?
In Iowa we have a 9% rate starting at $61K.