The state of New Jersey instituted a "millionaire's tax" (those making over $500K had their state tax rate raised to 9% from about 6.5%) in 2004, because its multimillionaire governor at the time was a socialist who hates success. Now, a new study has documented the devastating effect that this penurious and unfair tax scheme had on the state, as all the millionaires packed up and fled for friendlier locales:
The study found that the overall population of millionaires increased during the tax period. Some millionaires moved out, of course. But they were more than offset by the creation of new millionaires... [Furthermore,] they found that the rate of out-migration among millionaires was in line with and rate of out-migration of submillionaires. The tax rate, they concluded, had no measurable impact.
Wait. So you don't have to give the rich outlandish tax breaks just to prevent them from fleeing for another state? Huh. Someone should tell that to... New Jersey.
[WSJ; photo via Shutterstock]