Soak the Rich?
Yesterday, the Associated Press reported that millionaires are fleeing their luxury homes in New York to establish residency in less-taxing states. As a result, New York is receiving far less revenue than was expected from the wealthy since these wealth taxes were enacted last April.
Call it the law of unintended consequences.
To be fair, many of these losses come from scaled-back salaries and layoffs on Wall Street, but more than a few may be packing up and moving to more tax-friendly states such as Florida, Nevada and elsewhere–and are taking jobs with them. It is reported that billionaire Buffalo Sabres owner Tom Golisano who was paying $13000 a day in New York income taxes has moved to Florida. With him go 5000 jobs from Paychex, the Rochester, NY payroll processing company he owns. Rush Limbaugh has also given up his Manhattan home to escape excessive taxation.
Donald Trump tells Fox News that a number of his millionaire friends are also thinking of bailing from New York because of excessive taxation. Says AP:
“States also realized that having a higher tax rate than their neighbors would cost them talent, lose jobs and hinder economic growth, the foundation reported in May after Hawaii joined Maryland, New Jersey, California and New York to adopt a “millionaire’s tax.” New York, for example, has been careful not to raise its highest rates above New Jersey‘s, according to the foundation.”
In California, millionaires and job producers are already being heavily courted by Nevada, a state that is seeking to grow its employment base and fortunes with its minimal taxation and business-friendly environment: [youtube]http://www.youtube.com/watch?v=7pDKoX0uTwM[/youtube]
I’ve been involved in taxations for longer then I care to acknowledge, both on the individual side (all my employed life story!!) and from a legal viewpoint since passing the bar and pursuing tax law. I’ve supplied a lot of advice and redressed a lot of wrongs, and I must say that what you’ve put up makes impeccable sense. Please persist in the good work – the more people know the better they’ll be armed to cope with the tax man, and that’s what it’s all about.