How to Keep the Wealthy From Fleeing Connecticut

moving-family

 

When it comes to saving on taxes the wealthy have to continually consider all their options because lawmakers never seem to stop pushing for more legislation aimed at making the wealthy pay more taxes. Lately, it seems that there are more and more reports of the nation’s wealthiest individuals living in high-tax locations deciding to pack up their bags and head for states that are more tax-friendly.

Connecticut continues to face this problem because the state reportedly continues to spend more than it should. Because of the overspending the state keeps creating new efforts to squeeze more taxes from its wealthiest citizens. The problem is, many of these wealthy individuals are moving out. According to a recent report in the Hartford Courant, two of the biggest offenders are Connecticut’s estate tax and it’s gift tax.

Connecticut relies on wealthy taxpayers more than most states, but the number of wealthy individuals coming to the state is slowing down, while the number of wealthy taxpayers leaving is increasing. In fact, after the state introduced a huge tax increase in 2011, more than 27,000 residents moved out and took close to $4 billion in annual adjusted gross income with them.

Perhaps the best way to deter the exodus of high net worth individuals is to repeal, or at least reform the estate tax and to completely eliminate the gift tax, as Connecticut is the only state with a tax of that kind.

www.courant.com/opinion/op-ed/hc-op-smith-repeal-ct-estate-tax-0515-20160513-story.html
Posted in
how to avoid big taxes

How to Avoid Big Taxes on Capital Gains From Mutual Funds

How to Avoid Big Taxes on Capital Gains From Mutual Funds Many people who own mutual funds know they are typically a good way to save on taxes because capital gains are taxed at about half the rate of regular income. It’s one of the most common ways that the super rich make so much…

high estate tax

How to Avoid Paying a High Estate Tax

How to Avoid Paying a High Estate Tax It is said that there are two certainties in life: death and taxes. When it comes to some states those two things go hand-in-hand. The estate tax, which is also known as the “death tax” seems like a punch in the gut to many who oppose it.…

handle a tax bill

How To Handle a Tax Bill You Can’t Pay

How To Handle a Tax Bill You Can’t Pay What could be more chilling than receiving a notice from the IRS that you owe a huge tax bill? The answer: the realization that you don’t have the money to pay off said tax bill. So what should you do if you find yourself in this…

how the young generation learn to be great leaders

How Will the Young Generation Learn to Be Great Leaders?

How Will the Young Generation Learn to Be Great Leaders? Our nation has been the spawning ground of many of the world’s greatest leaders, including political, business and religious leaders. There are great leaders in all the world’s top organizations and businesses. After all, having great leaders is one of the biggest keys to having…