Some of America’s wealthiest families live in NJ.
They have the ability to hire tax experts that make sure their income is protected from the predatory tax rates inflicted on the rest of us.
I do not blame them for protecting their income for the benefit of their own families.
The more punitive the tax code the more likely revenues to the state will decrease.
They have the ability to hire tax experts that make sure their income is protected from the predatory tax rates inflicted on the rest of us.
While I do not disagree with your statement, this illustrates the ever-so-common error of looking at the mega-rich like the Rockefellers, Kennedys and Warren Buffett and being impressed if they want higher taxes. When your fortune is so diversified and large that it takes professional management, then higher tax rates are easy to handle. Funds are moved to tax-sheltered investments so that income isn't there to be taxed. The dreaded AMT bite is laughable because their income is already stripped of the 'tax preference items' and so on. In other words, the mega-rich work and game the system to the point where the only thing that they worry about is that some day, sometime, the masses might storm their fiscal gates with an asset tax that actually takes their capital.
On the other hand, there is the working rich, the ones who depend upon their working capital to keep a family business going and a reasonable tax rate to provide incentive to keep growing. These are the 2nd tier of wealth and they will move if possible because they cannot afford the money management schemes that comfort the mega-rich. I would imagine that many are tied to businesses or property and so are probably doing such wealth management on their own. Such schemes frequently mean reducing taxable expenditures like hiring more workers and building larger facilities.
Gee, I wonder what a Laffer Curve looks like?