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Saturday, February 16, 2013

'The Myth of the Rich Who Flee From Taxes'

Do the wealthy move away when taxes are increased?:

The Myth of the Rich Who Flee From Taxes, by Mikhail Klimentyev, NYT: ... It’s an article of faith among low-tax advocates that income tax increases aimed at the rich simply drive them away..., and on its face, it seems to make sense. But it’s not the case. It turns out that a large majority of people move for far more compelling reasons, like jobs, the cost of housing, family ties or a warmer climate. At least three recent academic studies have demonstrated that the number of people who move for tax reasons is negligible, even among the wealthy. ...
Of course, some people do move for tax reasons, especially wealthy retirees, athletes and other celebrities without strong ties to high-tax locations, like jobs and families. ... But there aren’t many people like that. “Tax-induced flight is rare,” Professor Tannenwald said. ...
Yet the tax flight myth remains surprisingly persistent, fanned by media coverage of celebrities, who are among those most likely to have the means and motive to choose a home based on tax considerations. “You can always find an anecdote.” Mr. Shure said. “Many people want this to be true as a way to discourage tax increases. ...”
Another zombie.

    Posted by on Saturday, February 16, 2013 at 02:00 PM in Economics, Taxes | Permalink  Comments (38)


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