ML/NJ
Posted on 04/30/2016 10:36:42 AM PDT by reaganaut1
Our top-heavy economy has come to this: One man can move out of New Jersey and put the entire state budget at risk. Other states are facing similar situations as a greater share of income — and tax revenue — becomes concentrated in the hands of a few.
Last month, during a routine review of New Jersey’s finances, one could sense the alarm. The state’s wealthiest resident had reportedly “shifted his personal and business domicile to another state,” Frank W. Haines III, New Jersey’s legislative budget and finance officer, told a State Senate committee. If the news were true, New Jersey would lose so much in tax revenue that “we may be facing an unusual degree of income tax forecast risk,” Mr. Haines said.
The New Jersey resident (unnamed by Mr. Haines) is the hedge-fund billionaire David Tepper. In December, Mr. Tepper declared himself a resident of Florida after living for over 20 years in New Jersey. He later moved the official headquarters of his hedge fund, Appaloosa Management, to Miami.
New Jersey won’t say exactly how much Mr. Tepper paid in taxes. But according to Institutional Investor’s Alpha, he earned more than $6 billion from 2012 to 2015. Tax experts say his move to Florida could cost New Jersey — which has a top tax rate of 8.97 percent — hundreds of millions of dollars in lost payments.
Mr. Tepper, 58, declined to comment on his move. He does have family — his mother and sister — who live in Florida. But several New Jersey lawmakers cited his relocation as proof that the state’s tax rates, up from 6.37 percent in 1996, are chasing away the rich. Florida has no personal income tax.
(Excerpt) Read more at nytimes.com ...
He’s a little late. Most of the rich New Jersey people living in places like Far Hills moved out years ago. At one time, they lived in New Jersey and commuted to NYC because NJ had better tax rates. Those days are long gone.
I love stories like that.
I was working foe a public employee union in CA, they go out and denounce capitalism and rich people, etc. The day Facebook went public they were dancing in the aisles over how much tax dollars the state would get from the sale. What hypocrites!
I hope to do that to Ct late 16 early 17
He’s going to move to Florida where he’ll vote for and give money to the same tax hiking politicians that made New Jersey the Hell hole it is today.
Feel sorry for you peasants in Florida.
We, in Florida, are seeing on TV here political ads already, from unknown(?) persons running as ‘Business men”, for Little Marco’s seat!
The theme is, they are not politicians!
In the past, government revenue was ‘earned’ from tariffs and customs duties. Lincoln introduced a form of progressive income tax to pay for the US Civil War in 1861. Income tax continued until 1873, as it was viewed as a war-time measure. Except for the brief period of the Wilson-Gorman Act, there was no income tax until the Sixteenth Amendment was ratified in 1913. The government has continued to depend on that Amendment, for thr legislators, it remains the most popular Amendment.
In Canada, the government supported itself successfully through tariffs and customs duties until WW1. After three years of war, the government introduced income tax to support the war, as a ‘temporary measure’... ... Ninety-nine years on, it remains, so to the government, ‘temporary’ means something different than to the average citizen!
The rot started with the riots of the 60’s.
They’ve spent billions trying to “buy-off” the rioters.
Worked for a while, but now what?
I think the same might apply to Connecticut.Once upon a time rich folks lived there and commuted to Manhattan because the tax rates were better.But now that the state is talking about taxing Yale's endowment the days of thinking of Connecticut as a tax "haven" are also long gone.
It's not like this is without precedent. From seven years ago in Maryland...
Millionaires Go Missing
Maryland's fleeced taxpayers fight back.May 27, 2009
Here's a two-minute drill in soak-the-rich economics:
Maryland couldn't balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."
One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.
Except for my time in the military I've lived my entire life in Massachusetts.Here one of the many running jokes about state politicians is that they're thinking of raising or expanding a "temporary" tax that was enacted 50...75...or 100 years ago.
If the right 40,000 people in NY moved out the city and state would collapse.
Incredible how the NY Times views this story through their liberal prism. Most people reading it will logically deduct that Jersey’s most financially successful person left because he was taxed out of the state. The planet Times finds fault that he was financially successful in the first place and that he even existed.
ML/NJ
I don’t think the guy in question was a tax hike voter
In other words, they are going to come up with additional schemes to get more of rich people's money. Government will never be satisfied until they control all of our money and then they will decide how much you need, they'll give that amount back to you, provided that you cooperate with them.
I’m sure the Lieberals will celebrate the 100th anniversary of income tax in 2017, with an increase. It is, after all, Pierre Turd-owe’s spawn ru(i)nning the Canadian government.
Would I be wrong to assume that Canada's new PM isn't universally loved North of the Border? :-)
Atlas Shrugged....
He’ll likely go offshore if Trump’s ‘hedge fund tax’ goes national.
How does one earn more than $6 billion in 4 years?!
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