Are High Taxes the Real Reason Why Wealthy People Move?

moving-truck-converted

 

Despite several reports that many of the wealthiest people in America are fleeing to other more tax-friendly states, a new report suggests that might not be the case. Of course, there have been some recent cases where these exact circumstances have occurred so there is precedence in this matter. However, it appears that not nearly as many wealthy are moving, as it seems, at least not just to escape those taxes.

That’s because a new study shows that in actuality most wealthy individuals don’t move from one state to another simply because of high taxes. According to the study, which was based on tax data collected over 13 years and reported in the American Sociological Review, wealthy taxpayers do move because of taxes, but those moves account for only 2.2 percent of the total.

The study also showed that those moves don’t greatly affect the state being left behind. What’s more, the study indicated that if a state decides to raise taxes by 10 percent on the top earners it only risks losing 1 percent of its millionaires. The reasons millionaires aren’t leaving for greener pastures with lower taxes are essentially the same reasons that most people don’t move. They have jobs, own companies and/or they’re married and have kids, all of which makes moving more difficult.

So, it turns out that although some millionaires are fleeing to other states with lower taxes, in reality most of them are just simply like everyone else when it comes to moving. It’s always easier to just stay where you are.

http://www.bloomberg.com/news/articles/2016-05-26/higher-taxes-don-t-scare-millionaires-into-fleeing-their-homes-after-all

Posted in
You Thought FBAR (Foreign Bank Account Report – Form TD F 90-22.1) Was Bad?

You Thought FBAR (Foreign Bank Account Report – Form TD F 90-22.1) Was Bad?

You Thought FBAR (Foreign Bank Account Report – Form TD F 90-22.1) Was Bad? By Ron Cohen, CPA, MST Partner Greenstein, Rogoff, Olsen & Co., LLP PLEASE See: http://www.calcpa.org/Content/26096.aspx We are happy to help you meet these old & new disclosure requirements. Non-reporting subjects a taxpayer to horrendous penalties, even if no tax is due.…

What the IRS Has On File About You and How to Obtain Your Tax Files

What the IRS Has On File About You and How to Obtain Your Tax Files

What the IRS Has On File About You and How to Obtain Your Tax Files IRS liens and levies can wreak havoc on a person’s life, making it difficult to obtain financing on a home or a car and wiping out savings. Maybe you want access to your tax files to see where the problem…

FATCA Letter

How to Respond to That FATCA Letter You Just Received in the Mail

How to Respond to That FATCA Letter You Just Received in the Mail Are you among the many Americans who have a bank account(s) in another country? If you are, then you have probably received a letter in the mail recently from the IRS. If you haven’t, then it’s almost assuredly on its way. So…

Investors: A Growing Taste For Exotic Fare; Job Search Expenses Can be Tax Deductible

Job Search Expenses Can be Tax Deductible

Can job search expenses be tax deductible? Summertime is the season that often leads to major life decisions, such as buying a home, moving or a job change. If you are looking for a new job that is in the same line of work, you may be able to deduct some of your job hunting…