Saturday, May 28, 2016
Are millionaires moving across the country to benefit from tax breaks? A study based on thirteen years of tax data shows that this assumption is principally untrue. Oftentimes, millionaires are moving for reasons that have nothing to do with taxes. They usually have community roots that have promoted their successfulness, which makes it hard to uproot.
Florida is only one of seven states with no income tax. Most millionaire tax flight, however, travels to the Sunshine State. If the study removed Florida from the list of states drawing tax-avoiding millionaires, tax migration would be virtually nonexistent. But, honestly, relaxing under a palm tree facing the Caribbean Sea makes tax avoidance pretty tempting for just about anyone with millions of dollars to spend.
See Higher Taxes Don’t Scare Millionaires into Fleeing Their Homes After All, Private Wealth, May 26, 2016.