People go where taxes are low....
posted at 1/30/2013 2:20 PM EST
Americans between 1995 and 2010 shifted some $2 trillion in wealth by abandoning California, Illinois, New Jersey and other high-tax states [Massachusetts]and unpacking in low-tax states such as Florida, Nevada and Texas [and Virginia].
Tiger Woods and other successful athletes have done so.
"After spending several years mapping and analyzing these data, one correlation keeps popping up: Income moves to where it is most welcome, tax-wise," Brown writes. "Money walks because opportunity talks."
One-way traffic from the Empire State to the Sunshine State is so steady that Harrington Moving and Storage specializes in easing that exodus. "Our professionals work hard to ensure that you don't have to during your move from New York to Florida," boasts the Maplewood, N.J., company's website. "You can rest assured knowing that your New York-to-Florida move will be smooth, relaxing and seamless throughout."
Connecticut still is smarting over the relocation of hedge-fund manager Edward Lampert. With an estimated net worth of $3 billion, according to Forbes, Lampert was considered the fifth-wealthiest man in the Nutmeg State. In August 2011, Connecticut increased taxes by $875 million, retroactively to that January. It cut the maximum property tax credit from $500 to $300 and lifted its top state income tax rate from 6.5 percent to 6.7 percent. Then, on June 1, 2012, Lampert moved his company, ESL Investments, to Florida. Lampert also took with him the $10.6 billion that ESL reportedly controlled at that time.
Supply-side economists Arthur Laffer and Stephen Moore found similar unintended consequences after New Jersey boosted its top tax rate from 6.35 percent to 8.97 percent. As they wrote in the Wall Street Journal, "Examining data from a 2008 Princeton study on the New Jersey tax hike on the wealthy, we found that there were 4,000 missing half-millionaires in New Jersey after that tax took effect." State deficits soon erupted like Jersey barriers beside a ditch.
Politicians should always remember that taxpayers are not oak trees. Shake them too hard, and they and their money soon will be gone with the wind.
Massachusetts is on the brink..high taxes, increasing number of "takers" and decreasing number of "makers"...the population loss is glossed over because immigrants are coming in to Mass. for the freebies...good luck!
See you in the South, soon , unless you work for the Government, of course.