Will the rich leave the US if we tax them?
Table of Contents
Will the rich leave the US if we tax them?
As long as revenues are used to fund public services that matter to residents, there is no reason to think taxes would lead to out-migration. If states raise taxes on the rich, the top income earners will leave, causing not just a loss of tax revenue but also a shortage of high-skill workers.
Why are the rich leaving the US?
Insider previously reported the US passport lost a big chunk of its value in 2020. Some of the reasons the richest Americans wanted to flee were the handling of the pandemic, general social unrest, and, perhaps most importantly, the presidential election.
Are taxes higher for the rich?
The richest 400 Americans paid an average 8.2\% federal income tax rate, which is “low” relative to other taxpayers, according to a White House report published Thursday.
Will the wealthy pass the tax hikes and leave?
In response, the wealthiest of the wealthy have broadcast a message: Pass the tax hikes and we’ll leave. The billionaire hedge-funder Ken Griffin has spent nearly $50 million—yes, you read that right—fighting Governor J. B. Pritzker’s progressive income-tax proposal in Illinois.
Why do rich people move to another state?
Local tax increases can cause high-net-worth individuals to move, tax experts said; tax avoidance and tax arbitrage are multitrillion-dollar affairs, and rich people are sensitive to tax rates. But many of the people who move when their home state raises taxes are close to retirement anyway.
Which states have proposed tax hikes on the wealthy?
Lawmakers in Hawaii, Illinois, Massachusetts, Maryland, Oklahoma, Vermont, and Wisconsin have also proposed tax hikes on high earners. In response, the wealthiest of the wealthy have broadcast a message: Pass the tax hikes and we’ll leave.
Should legislators be afraid of tax cuts?
In normal times, legislatures should set such fears aside. Local tax increases can cause high-net-worth individuals to move, tax experts said; tax avoidance and tax arbitrage are multitrillion-dollar affairs, and rich people are sensitive to tax rates.