Are High Taxes the Real Reason Why Wealthy People Move?
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
General Rules for Corporate Reorganization
General Rules for Corporate Reorganization In order for a transaction to be given non-recognition treatment under the reorganization provisions, it must meet certain requirements. • The reorganization must meet certain tests in the Regulations regarding “continuity of interest” and “continuity of business enterprise.” • The reorganization must be conducted according to one of seven patterns…
Accepted Patterns for Corporate Reorganization: Types A-G
Accepted Patterns for Corporate Reorganization:Types A-G The seven qualifying patterns of reorganization described in IRC section 368(a)(1)(A) through (G), are as follows: •Type A- a statutory merger or consolidation; •Type B- the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or…
8 Ways to Save on Car Insurance
8 Ways to Save on Car Insurance By Michael Broach Now that the days of cheap gas are over, people are constantly looking for ways to save a few bucks on their car. Most people will look for ways to make their car more fuel efficient, but another way to save is to lower your…
Ten Things the Average Person Does Not Know About Annuities
Ten Things the Average Person Does Not Know About Annuities By Robert D. Cavanaugh, Clu Deferred annuities possess characteristics found nowhere else. They play an important part in seniors’ portfolios. Seniors hold billions of dollars in deferred annuities. However, my experience is that the average person knows little about the unique advantages of deferred annuities,…