The Conservative Cave
Current Events => Economics => Topic started by: Chris_ on May 02, 2016, 12:07:22 PM
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One Top Taxpayer Moved, and New Jersey Shuddered
Our top-heavy economy has come to this: One man can move out of New Jersey and put the entire state budget at risk. Other states are facing similar situations as a greater share of income — and tax revenue — becomes concentrated in the hands of a few.
Last month, during a routine review of New Jersey’s finances, one could sense the alarm. The state’s wealthiest resident had reportedly “shifted his personal and business domicile to another state,†Frank W. Haines III, New Jersey’s legislative budget and finance officer, told a State Senate committee. If the news were true, New Jersey would lose so much in tax revenue that “we may be facing an unusual degree of income tax forecast risk,†Mr. Haines said.
The New Jersey resident (unnamed by Mr. Haines) is the hedge-fund billionaire David Tepper. In December, Mr. Tepper declared himself a resident of Florida after living for over 20 years in New Jersey. He later moved the official headquarters of his hedge fund, Appaloosa Management, to Miami.
New Jersey won’t say exactly how much Mr. Tepper paid in taxes. But according to Institutional Investor’s Alpha, he earned more than $6 billion from 2012 to 2015. Tax experts say his move to Florida could cost New Jersey — which has a top tax rate of 8.97 percent — hundreds of millions of dollars in lost payments.
New York Times (http://www.nytimes.com/2016/05/01/business/one-top-taxpayer-moved-and-new-jersey-shuddered.html?_r=0)
I wonder if the editorial board at the Times even reads their own paper.
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This is a predictable result of the Libs' and Progs' beloved screw-the-1% tax scheme:
* For a time, they pay a lot of $$;
* The high tax state relies on that large % of their revenue that coms from a very few sources;
* The 1%ers feel the intended pain, but don't stay still to be screwed;
* The 1%ers move to a low tax state (they can afford to, and with computer communications, their business and investments are not hurt);
* Just one or two such moves will cause a budget crunch or crisis (in a state that was probably also an out-of-control spender!).
Libs & Progs, such as DU-folk don't understand it that way. They just rail against the "freeloader" and against the low tax state, and fantasize about ways to plunder 1%ers when they move out and ways to take revenge on states that dare not to screw their wealthier citizens with high tax rates.
And for any DUer who chances to see this, I am not and never have been a 1%er ... or a 10%er ... or a 20%er ... or a ...
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Lot's of people leaving high tax states going to Florida such as, Tiger Woods, Phil Mickelson, Former Los Angeles Angels outfielder Torii Hunter.
Democrats just don't seem to have the ability to learn about economics.