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Alcoa Inc. Message Board

  • notarethug notarethug Feb 16, 2013 8:49 AM Flag

    The Myth of the Rich Who Flee From Taxes

    It's an article of faith among low-tax advocates that income tax increases aimed at rich people drive them away. As Stuart Varney put it on Faux News: "Look at what happened in Britain. They raised the top tax rate up to 50% , and two-thirds of the millionaires disappeared in the next tax year. Same things are happening in France where the top rate is 75%."

    That is what low-tax advocates want us to think. But it is not the case. It turns out that a large majority of people move for far more compelling reasons, like jobs, the cost of housing, family ties, or a warmer climate. At least 3 academic studies have demonstrated that the number of people who move for tax reasons is negligible, even among the wealthy.

    For example, Criostobal Young, an assistant professor of sociology at Stanford studying the effect of recent tax increases in NJ and CA, said "It's very clear that overall, modest changes in tax rates do not affect millionaire migration."

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    • Low tax advocates like Mr. Varney point to Maryland as an example of tax flight. But a study by the Institute on Taxation and Economic Policy found that nearly all the decline in millionaires was a result of the drop in incomes from 2008 to 2011 largely attributable to the stock market's plunge and recession - not migration.

      • 3 Replies to notarethug
      • And the best part is, since ignore messages do not show, I no longer have anything to reply to. It is great.

      • "Low tax advocates like Mr. Varney point to Maryland as an example of tax flight."

        Some facts that bolster this point for you to ruminate (data as of May 2012)...

        "Maryland accounted for the largest taxpayer exodus of any state in the region between 2007 and 2010, with a net migration resulting in 31,000 residents having left the state. Where did most of them go? Virginia. Virginia is now home to nearly 11,500 former Marylanders—a shift of $390 million from the tax rolls of one state to another, according to the non-partisan Tax Foundation."

        "That's the position Maryland finds itself in after six years of damaging tax increases. Since 2007, taxes and fees have been raised 24 times, taking an additional $2.4 billion out of the economy each year. That explains why two states with similar economies, demographics, and a shared dependence on federal government employment and procurement sharply diverge in job growth. Maryland's unemployment rate is a full point higher than Virginia's and just last month the state led the nation in job loss, according to the Labor Department's April numbers."

        "Maryland's sales tax is 6 percent; Virginia's is 5 percent. The top personal income tax rate is 9 percent in Maryland compared to 5.75 percent in Virginia. The corporate income tax is 8.25 percent compared to 6 percent."

      • If you're going to plagiarize straight from the Times, you should at least have the decency to quote all the "facts". Albeit that is how the plagiarizing ROTC flunkie started his career of incompetence...

        "It’s very clear that, over all, modest changes in top tax rates do not affect millionaire migration,” he told me this week."

        "Of course, some people do move for tax reasons, especially wealthy retirees, athletes and other celebrities without strong ties to high-tax locations, like jobs and families."

        "Gregory Mankiw, an economist at Harvard, said that tax rates did affect migration, at least of certain groups. “Rich people can pretty much live anywhere,” he said. “If you’re a retired person trying to decide between Palm Beach and Santa Barbara, the tax difference between Florida and California is huge. If you’re an academic choosing between Stanford and Harvard, it might be a factor.” (Massachusetts has a flat income tax rate of 5.3 percent.) "

    • Anecdotal news coverage makes it seem like people are leaving in droves because of high taxes. They're not. There are a lot of low tax states, and you don't see multimillionaires flocking there.

    • If you thought you were going to convince the nitwits here with that fact based post, you are kidding yourself. Just look at the head nitwit's answer to you. He makes reference to one of the great lies of the last few election cycles, the swift boating of J. Kerry. Done to get attention off of Shrub's proud service to our country, bumbling around in a cocaine induced haze while failing to meet his meager obligation to the ANG. Followed by an epic failure for all times........his presidency.

      • 2 Replies to jugusheadus
      • "If you thought you were going to convince the nitwits here with that fact based post, you are kidding yourself."

        Notaclue did manage to convince you with the associate sociology prof's "facts" Headus, but then you do get your "facts" from your own personal edition of "Time"...

      • "Followed by an epic failure for all times........"

        The facts certainly prove how Obushma has set virtually all of the records for epic failure Headus, albeit I'd cut and run from Kerry's attempt at dodging his taxes too if I believed in the incompetence of "hope and change". Not to mention how Obushma is so proud of his coke snorting heritage while optimizing our heroes in his "right war"...

    • "It's an article of faith among low-tax advocates that income tax increases aimed at rich people drive them away."

      In swift boat Kerry's case, he tried to sail away before he got caught trying to duck his moral obligation to redistribute his wealth. But that's why they call them Libocrits...

 
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