- Apr 5, 2010
- 80,490
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Remember that constant drum from the left that the super rich don't pay any taxes? Well, New York State (and of course California too) has come up with a solution to get rid of those tax deadbeats - chase them out of town and let these rich tax deadbeats move to Florida, Texas, and Arizona. Only trouble is, those super rich tax deadbeats aren't really deadbeats after all and pay most of the state's income taxes collected and now those taxes will be collected in other states and not New York (and California). The rich will now be paying their fair share in red states
For perspective, the 41,000 filers in the city’s top 1% pay more than 40% of all its income taxes. The 450,000 filers in the top 10% pay about two-thirds of all income taxes.
In other words, the remaining 90% of taxpayers contribute about one-third of the city’s income tax revenue.
Super rich New Yorkers — including billionaire Carl Icahn — are fleeing the Big Apple in droves. Here are the top 3 states they're quickly escaping to
These snowbirds are heading south for the winter. And staying put.finance.yahoo.com
What the "tax the rich" people never understand is that at the State level people can just move, so the $50k increase you think you are getting from a rich tax turns into a $1.5M loss due to the entire tax base going somewhere else.
At the federal level it incentivizes people to be more thorough with their uses of shelters and deduction policies, which can also result in a net loss. A person going from 1.5M in taxes to 1.8M in taxes may decide it's worth it to pay an accountant 100k to figure out how to reduce his burden, and that accountant may figure out how to legally get the tax burden to 1.2M thus losing any gain the government may have gotten.