Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
People making that kind of money as you note are business owners and the higher ups that MAKE decisions like when to move their business out of state for incentives etc.
This alone won't do it but it will add to the consideration.
P.S. Watch Oprah pull a Tiger Woods and set up home in Florida....assuming her official state of domicile isn't already FL or TX etc.
No, she won't. The super rich honestly don't care. She moved from Illinois to California, which has even higher taxes. You guys just don't get it.. wealthy people choose where they live based on more important things than taxes.
Quote:
Originally Posted by EugeneOnegin
Highland, Crowne Point, and Munster provide low crime, much greater availability of nice houses at probably <10% the price, lower taxes, great schools, less population density and traffic, more space, high median household incomes. Plus Munster, Indiana is the home of the best brewery in the United States.
I don't think a 3% hike in state income taxes for people earning over $1 million per year is going to make a large percentage of them leave. Maybe something like 1-3%, because people earning that kind of money tend to have deep roots in the community (businesses, high level jobs, foundations, etc.), but these are some of the nicer cities in the US and are a lot better places to live than Chicago in many ways.
I wonder how many millionaires this tax hike, along with possible future tax hikes due to the Chicago's poor financial situation, job market, and shrinking population might keep from moving to Chicago though. It's probably a bigger deterrent to high earners moving into the city than it is an impetus for the ones already there to move out of it.
We all know what's been going on with the regular people fleeing Illinois due the poor job market, taxes, etc. The biggest destination has been Indiana, followed by Texas, and then neighboring states Missouri and Wisconsin. Many of them aren't leaving Illinois because of the weather:
Of course, no one who perpetuates the dishonest tax-flight myth bothers to read any evidence.
Illinois migration to Wisconsin and Indiana... are you sure it has nothing to do with housing costs? (the main cause of out-migration) Wisconsin's tax rates aren't much better..
Millionaires just don't pack up and leave due to taxes. High taxes may affect businesses from moving in, but it doesn't affect residents moving in. High taxes do not keep people from moving to Silicon Valley, New York City, and Chicago. Jobs are more important to people than damn taxes.
Let's see...8.8% state income tax vs. 0% income tax. Hmm...I got nothing.
And if you live in New York City it's even worse...12.7% (state + city income tax).
Also, the majority of super high earners don't work jobs, their income is from capital gains.
Florida capital gains tax- 0%
New York capital gains tax- 8.8%
And they can access their brokerage account from a laptop in Florida just as easily as they can in New York.
Then why haven't I seen Wall-Street pop up in Florida yet?
Why is Florida's GDP per capita so awful?
It really is not that big of a deal. And stop quoting marginal tax rates vs. effective tax. Most people affected by the "millionaire tax" bracket don't actually have much flooding into that bracket. They are "barely" millionaire earners. Most people in NY (myself included) pay roughly 6% effective tax. New York's taxes are reasonably flat across the board (most fall between 4% to 6.85%). It relies on the EITC to help lower-income residents.
Oprah has a home in the Keys on an island by itself.
Her primary residences are a 43 acre property in Montecito and another place in Maui.
She has had numerous real estate holdings over the years, including multiple simultaneous co-ops in Chicago that she never lived in, a farm in Indiana, land in Wisconsin and Fischer Island.
I don't think she is too concerned about state income tax rates.
Then why haven't I seen Wall-Street pop up in Florida yet?
We were talking about wealthy individuals who earn a lot of money from investments, what does Wall Street popping up in Florida have to do with anything?
Quote:
Originally Posted by ErikBEggs
Why is Florida's GDP per capita so awful?
Because their economy is based on tourism. Tourism = service sector jobs = low skill = low pay. Because they have a large number of retirees. Because they have a lot of immigrants, legal and illegal. Because they have a lot of young people. Because they have lower than average cost of living.
Why are wages in New York so low relative to cost of living? Why does the median household income in the poor state of Florida have more purchasing power than that of New York? Why does New York have the 6th highest COL-adjusted poverty rate?
Quote:
Originally Posted by ErikBEggs
It really is not that big of a deal. And stop quoting marginal tax rates vs. effective tax. Most people affected by the "millionaire tax" bracket don't actually have much flooding into that bracket. They are "barely" millionaire earners. Most people in NY (myself included) pay roughly 6% effective tax. New York's taxes are reasonably flat across the board (most fall between 4% to 6.85%). It relies on the EITC to help lower-income residents.
6.85% on all income over $205,850, 8.82% on $1,029,250+, plus nearly 4% on $500,000+ if you live in NYC. Still getting massively raped either way.
8.47% average state + local sales tax in NY, 8.875% in NYC.
1.23% property taxes on houses that are 2x as expensive as the rest of the country.
Pretty easy to see why people are fleeing New York.
No, she won't. The super rich honestly don't care. She moved from Illinois to California, which has even higher taxes. You guys just don't get it.. wealthy people choose where they live based on more important things than taxes.
Of course, no one who perpetuates the dishonest tax-flight myth bothers to read any evidence.
Illinois migration to Wisconsin and Indiana... are you sure it has nothing to do with housing costs? (the main cause of out-migration) Wisconsin's tax rates aren't much better..
Millionaires just don't pack up and leave due to taxes. High taxes may affect businesses from moving in, but it doesn't affect residents moving in. High taxes do not keep people from moving to Silicon Valley, New York City, and Chicago. Jobs are more important to people than damn taxes.
Chicagoans refer to Indiana as the armpit. Millionaire Chicagoans are not going to be flocking to Indiana.
Of course, no one who perpetuates the dishonest tax-flight myth bothers to read any evidence.
How am I advocating a "tax-flight myth" when I agreed that millionaires rarely move because of taxes like these? I mostly agreed with you there.
Quote:
Originally Posted by ErikBEggs
Illinois migration to Wisconsin and Indiana... are you sure it has nothing to do with housing costs? (the main cause of out-migration) Wisconsin's tax rates aren't much better..
Home prices are only about 6% higher in Illinois than Wisconsin, and that's with Chicago's massive population skewing the average higher. Outside of Chicago, home prices are fairly comparable in the three states.
Quote:
Originally Posted by ErikBEggs
High taxes may affect businesses from moving in, but it doesn't affect residents moving in. High taxes do not keep people from moving to Silicon Valley, New York City, and Chicago. Jobs are more important to people than damn taxes.
How do you know, did you conduct a poll?
For the record, I mentioned taxes there as one of many factors in regards to people choosing where to move. Other factors being the job market, political climate, business climate, the state's fiscal future, etc. It's the whole package and Illinois is in poor shape on all of the above.
I most certainly take taxes into consideration when deciding where to move, as do many others. Other factors can outweigh the negative of higher taxes, like a $250k per year job at Twitter, or great weather, but taxes are still a factor. Believe it or not, most people care how much money they make.
Last edited by EugeneOnegin; 03-21-2014 at 09:30 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It's probably a bigger deterrent to high earners moving into the city than it is an impetus for the ones already there to move out of it. 
