Thursday, April 21, 2011

Millionaires Don't Flee From "Millionaire's Tax"

16 comments:

TJE said...

This study seems hinky to me. It shows that millionaires did not outmigrate more than high income citizens who were not millionaires. That may be, but NJ is one of the highest tax states in the country. The fact that millionaires are not fleeing faster than other high income taxpayers should be cold comfort to policymakers.

TJE said...

http://forums.motortrend.com/70/8053171/the-drive-in/escape-from-taxation-wsj/index.html

TJE said...

Except for LA (Katrina) what do the biggest losers have in common?

http://www.nj.com/news/index.ssf/2010/09/nj_ranks_5th_in_nation_for_mos.html

PBM said...

I like the picture you added.

Do these two studies disprove each other? If so, which one do we trust?

TJE said...

Taken together, they show that millionaires are not leaving NJ more than upper middle class citizens but that high tax states are experiencing the most out-migration.

PS. In a year or so I'll be a proud resident of the state of Florida!

Patrick_L said...

but there is no evidence that high-tax levels are causing any migration. There are lots of other factors to consider, including climate and land value for instance.

Megan said...

I have seen anecdotes of people leaving because of high tax rates, not that that really proves anything. A millionare who gave millions to charity and public and private schools went to Florida because of the high tax rates. Too bad because he probably created more jobs in NY than the entire stimulus.

TJE said...

Mr. L is right that the reasons for interstate migration are complex-- jobs, climate, etc. But it would surprising if, at the margin, taxes did not make a difference. Higher income/wealth citizens are most likely to be affected by such considerations. Boston College study cited in one of these article shows substantial exodus of the relatively wealthy from NJ.

Patrick_L said...

I agree with you Professor Eismeier that taxes at the margin do have some impact. However, I think it's a very small impact- because of those complex interstate migration factors. You and Megan probably think it's higher than I do, but it's still within a very tight region- and the evidence is even mixed whether the tax rates do have an impact, let alone whether it's that significant.

It's definitely something for a state to look at, but states have much more pressing concerns- even when it comes to issues like economic growth and job creation, than the very modest income tax rates, effective or statutory, that they currently have.

Ryan Karerat said...

Even cats are trying to flee the Jerz. And they don't pay any taxes.

Megan said...

not yet..

TJE said...

I'm leaving CNY because after 34 years of sun deprivation. In some ways, I would like to stay in the Hudson Valley-- much more sun than CNY, proximity to Yankees, Rangers, children. But my property taxes will go down by 50% and my state income taxes and state death tax will go down by 100% when I migrate.

Go Gators!

PBM said...

It's called an estate tax.

TJE said...

Death tax has a much nicer ring.

PBM said...

It does act as a much more effective talking point. I like to call it the Paris Hilton Tax.

TJE said...

Paris Hilton is a great American.