This is a lesson that Seattle, Portland, and the Tech Centers in California are all learning.
Right now, in WA state Democrats and their progressive buddies are wanting to impose an income tax. They have tried for years and each time it gets shot down. Now they have come up with the idea of a Capital Gains tax. They want to add 9% tax to all capital gains over $50,000 and exempt some of the obvious ways it can hurt most people.
People won's squeal too badly as long as the federal capital gains tax is 15% as the 15%+9% on capital gains taxes is close to the 25% federal income tax bracket that most of the richer people would pay anyway. Except it will discourage Venture capital investment, which is very important to this state. It will also encourage others to move their investment accounts to other states with more favorable tax treatment and maybe establish snow-bird homes in those states. Those snow bird homes could become permanent very easily, which is probably part of the problem with NY.
> It will also encourage others to move their investment accounts to other states with more favorable tax treatment and maybe establish snow-bird homes in those states.
Exactly what I am doing. No way I want to pay a dime of capital gains taxes to Massachusetts.