I See Rich People

The top 3% or Americans continue to concentrate wealth and most pay a tax rate of 20%. This leads some people to ask, “Should the rich pay more?” The rich respond by saying to the States, try and get more money out of us and we’re moving to another State. How many of these rich folk actually move away? How much will a State benefit as far as revenue by increasing taxes on the wealthy?

          Two studies released last month from Stanford and Princeton addressed these questions. Turns out very few affluent folk actually move away. The studies analyzed the impact of a 2004 tax increase on top earners in New Jersey. Wealthy people threatened to move away. The studies found that the State lost $16.4 million from people actually moving away.  New Jersey increased its revenues by over a billion dollars because only a few actually made the move. You can argue with the policy and the ideology, but the results speak for themselves.

          Now I’m not advocating running out and taxing rich people. I advocate that any tax increases on the wealthy only occur at the State level. The wealthy should have the freedom and option to move and live in a State with lower (or no) income taxes. Changing the Federal tax code to increase revenue limits personal choice & the exercise of personal freedom.