Tax the rich and the rich

[faethor]

don't move. http://www.thelowdownblog.com/2011/06/research-tax-increases-do-not-lead-rich.html

 

[the_leander]

don't move. http://www.thelowdownblog.com/2011/06/research-tax-increases-do-not-lead-rich.html

I read it and spotted this:

But the very wealthy are already likely to have fairly well developed tax sheltering strategies already at work

They themselves may not move, but then they don't have to. They can simply move their money to more amenable places.

That said, as far as the banks go, I agree with the basic premise presented in the article. For them it is not just a question of money, but of location, of infrastructure, of skillsets etc. Their threat of "if you make us pay taxes or behave responsibly we'll throw our toys out of the pram" is just that - A threat.

 

[metalman]

Tax the rich and the rich and the rich don't move
http://www.thelowdownblog.com/2011/06/research-tax-increases-do-not-lead-rich.html

Non sequitur

thus be a net plus in terms of tax receipts.

They don't move, they just reduce their income. A state may get a one time windfall, but the rich have full time accountants, they simply start moving their money to tax free bonds and eliminate new business investments.

data from the Maryland Office of the Comptroller on millionaire tax returns from before and after Maryland's 2007 tax hike. Their findings showed there were 3,837 less millionaire tax returns filed in 2008 compared to 2007, 547 of them were due to state residency changes, the other 3,290 millionaires simply made less money.

 

[faethor]

Metalman the stories we've been told, time and again, is that raising taxes will drive the rich people out of the state and out of the nation. The evidence is against that.