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
How Are Some Big U.S. Companies Shrinking Their Tax Bill?
Every company wants to save on its tax bill. Although tax inversions have been making a lot of news lately, there are many other methods that corporations use to cut back on their taxes. In fact, seven companies in the S&P 500 index, including some big names that everyone is familiar with, have been able…
Democrats Take Dead Aim at Tax Inversions
The democrat lead U.S. Senate has been making a lot of noise lately regarding tax inversions, the practice of U.S. companies moving their corporate headquarters overseas in order to avoid the high price of overbearing U.S. corporate taxes. Those senators have apparently made good on a recent promise that they would look to put a…
How to Find the Right Investment Advisor
Are you looking to invest? Perhaps you just want some help with your financial planning or even your estate planning. Finding someone that can truly help you is difficult sometimes, simply because there are so many options to choose from. The Internet is full of so-called experts that can help you make wise investments and…
What’s the Deal With U.S. Corporate Taxes?
What’s the Deal With U.S. Corporate Taxes? There has been a lot of back-and-forth amongst lawmakers and political pundits in the media lately regarding U.S. companies switching their addresses to foreign locations in order to avoid corporate taxes. One side claims that there is nothing wrong with such deals, while many democratic lawmakers, including President…