Wealthy don’t flee from higher taxes
October 17, 2012
Do rising state taxes really cause millionaires to trundle off to more friendly fiscal environs?
Apparently not, according to the findings of two sociologists who will be presenting their findings to lawmakers, lobbyists, reporters and others in a Sacramento appearance on Monday. (UC Davis news service)
The study tracks high-income earners from several states, officials and voters of which have created “millionaire” tax hikes as federal tax rates on those incomes have declined.
Analyzing two recent tax hikes from New Jersey and California, the study’s authors found little inclination of wealthy taxpayers to migrate to lower-tax havens in the face of increasing home-state demands.
The study was conducted by Charles Varner, a doctoral candidate in sociology at Princeton University, and Cristobal Young, an assistant professor of sociology at Stanford University.