New Jersey has received very low amount of Federal aid for decades. It really doesn't have that much to do with representation in Congress, although of course it doesn't help having 2 democrat Senators.
New Jersey gets less back than most states because it is one of the wealthiest states in the nation (#2 per capita income) and because it is relatively small and does not rely on Federal assistance like too many other states.
I don't expect to see much of a migration of wealth out of New Jersey because of Mcgreevy's silly millionaires tax. Most of my clients are very wealthy people and have large investments in business, real and personel property in New Jersey. They are going to eat this new tax (unless hopefully it is repealed) and continue doing what they do best here.....making lots of $$$$$. Unfortunately there isn't much else to do for many of them. It does not make fiscal sense to move many types of business from a rich area to a poor area just to avoid taxes.....yes you pay the government less but you can't make nearly the money you can make here in New Jersey nor do you get the same rate of appreciation on investments like real estate that you can get here. New Jersey is the goose that laid the golden egg and nobody knows that better than democrat pickpockets.
The question is: does this tax effect wealth or income?
I defined wealth as assets (real or intangible) and income as that shows up on W-2 or tax return.
Is this new levy a tax on intangible assets?
I agree that leaving New Jersey is difficult, if one is tied to a business or to real estate.
This new tax may not effect business owners directly and will effect people who own liquid assets only indirectly. As any accountant knows, business owners have a great deal of flexibility about the salaries and dividends they pay themselves.
The income from real estate because of the quirky laws that effect it are similarly sheltered to some extent.
Those who receive income from stocks and bonds are effected but many of these people are retired and can migrate to Florida for long enough to establish a "residence".
It seems to me (and I could be wrong) that the class that will be effected most are white collar professionals, the sort of people who worked at the World Trade Center.
These people generate high incomes but because they are generally young, they have little in the way of liquid or tangible assets.
The great irony is that these are the very taxpayers who vote Democratic in large numbers.