As expected, the proposed Millionaire’s Tax to ameliorate the State’s fiscal crisis, has failed to pass in the legislature.
Also – opposition to the tax leaned in on the United Van Lines study. This was not the only data used in the discussion. The rebuttal to the United Van Lines study is well framed and worth repeating.
Here is a long quote from Tom Moran of the Star Ledger Editorial Board. The URL of his opinion piece is provided at the end.
The myth is that New Jersey’s high taxes, especially those on the rich, are driving away the very people we need to make our economy hum, that we are making the state a poisonous place for rich people to settle.
The poster child is David Tepper, the billionaire who left New Jersey in 2016 and moved to Florida, along with the headquarters of his hedge fund, Appaloosa Management. Tepper earned an estimated $6 billion in the four years before leaving. If you apply New Jersey’s top income rate of 8.97 percent, the loss to our state treasury works out to about $135 million a year. And he’s just one rich guy.
As backup, Murphy’s opponents cite data showing that New Jersey loses more income in state-to-state moves than any other state, except New York and Illinois, according to a recent study by Bloomberg News. The top destination is Florida, which has no income tax.
They also cite a study by United Van Lines showing that for every family that moved into New Jersey from another state, two families moved out, the highest rate in the country.
“New Jersey can’t afford to keep losing taxpayers and businesses,” says Assemblyman Jon Bramnick, the Republican leader.
Here’s the problem with that argument: New Jersey has more millionaires today than it’s ever had before, by a long shot. And their ranks are growing fast.
The latest data from the Treasury Department shows the number of tax filers reporting incomes of $1 million or more jumped by 75 percent between 2009 and 2017. That compares to an average of 6 percent among all income groups.