If taxpayers are fleeing your jurisdiction, perhaps it’s not a good idea to raise taxes. From Simon Black at sovereignman.com:
You would think New Jersey would have learned its lesson…
Two years ago, New Jersey’s richest resident – hedge fund billionaire David Tepper – decided to move himself and his business to Miami Beach.
Tepper, who personally earned more than $6 billion from 2012-2015, was tired of paying New Jersey’s top income-tax rate of 8.97% for the 20 years he lived there, in addition to the country’s highest property taxes, the estate tax and inheritance tax.
By moving to Florida, a state with ZERO income tax, Tepper stood to save hundreds of millions of dollars each year. And, as an added bonus, he’d be living in the Sunshine State.
Anyone with some common sense would have at least acknowledged the possibility that a guy like Tepper would consider moving to save a few hundred million bucks.
But New Jersey, content on milking its ultra-wealthy for tax revenue, was caught completely by surprise.
And Tepper’s departure left an enormous hole in its budget.
Think about that: the departure of literally ONE person caused big problems for New Jersey’s budget.
And Tepper wasn’t the only one leaving…
According to the New Jersey Business and Industry Association, the State of New Jersey lost a whopping 2 million residents between 2005 and 2014, earning a combined $18 billion in net adjusted gross income, i.e. income that would have been taxed by the state.
So it’s not just the masters of the universe that are tired of paying sky-high taxes. It’s also the regular wage earner and small business owner.
60% of these folks went to Florida, with a state income tax of zero.
So the message from New Jersey’s residents (well, now former residents) is pretty clear: taxes are too high.
Now, what do you think New Jersey is doing to solve this problem?
Instead of making the state friendlier to productive people and businesses, New Jersey decided to RAISE taxes on the sad saps that remain within its borders (for now).
New Jersey tax residents making more than $5 million will now pay 10.75%, up from 8.97%
To continue reading: The state of New Jersey just signed its own death warrant