Here is more evidence that the "rich" respond to tax policy. New York and California, two states with among the highest state tax rates in the nation, are experiencing below average income growth. The two states are facing large budget deficits due to their reliance on increasing taxes and failure to control spending. Now, it is catching up with them.
It seems "rich" people and middle class people are leaving the two states and are going to states like Texas and Florida. These states have no state income tax.
Quote:
California has the highest state income tax rate in the country (10.3%), while New York State also has a high income tax rate (6.85%), with the combined state and city rate rising to 10.5% in New York City.
From 1997-2006, New York State lost 409,000 people (not counting foreign immigrants). For every two people who move into the state, three flee. Maybe the problem for New York is merely bad weather, not high taxes.
Except that sunny California is experiencing a similar exodus. Over the past decade 1.32 million more native-born Americans left the Golden State than moved in -- despite beaches, mountains and 70-degree weather. Mostly the people who have fled are the successful, the talented and the rich.
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How Not to Balance a Budget - WSJ.com
I wonder what will happen under Obama's tax plan, I think I already know.
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