High income individuals are making headlines by publicly announcing their intentions to leave high tax jurisdictions for better tax climates. Rush Limbaugh announced his intent to leave New York City, and the owner of one of the Buffalo, NY professional teams announced that he was leaving the state. The very rich pay a big fraction of state income taxes...and they are more mobile than ever. This article summarizes the general effect of this tax induced migration.
"Taxing the Rich" may pay some short term financial dividends, but longer term it weakens the competitiveness of the state. Politically, it is a no brainer. It gives the politicians supporting such measures and aura of "helping the little guy," and "bringing the fat cats into line." The ill effects of these policies take a few months or years to settle...by then the public no longer can make the connection of how it happened.
The Hedge Tax recognizes the irresistable temptation of "flogging by tax code." Ultimately, every citizen should support a fair tax system. That includes a system that does not undermine their economic well-being...Support the Hedge Tax.
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