A white paper from investment advisory corporation RegentAtlantic finds that New Jersey is losing high percentages of its revenue to wealthy residents moving out to states like Pennsylvania and Florida in the hopes of escaping the highest taxes in the nation.
New Jersey reached record levels of debt last year and Moody’s lowered its outlook for the state, citing insufficient revenue to maintain the burdensome state infrastructure that boasts an unwieldy number of public pensions and municipal governments. Moody’s chided Chris Christie’s administration for its “sluggish” recovery from the late-2000s recession and blamed the state’s insufficient revenue for the problem. As a result, Democrats in the state are pushing for higher taxes on the wealthy to generate more revenue.
RegentAtlantic finds in their recently-released white paper that much of the reason for the low revenue intake is that the state’s tax burden is disproportionately upon the shoulders of the wealthy, a high percentage of which are simply moving out and taking their money with them.
While a steady trickle of wealthy New Jerseyans began to leave the state at the turn of the century, the exit was exacerbated by 2004’s state “millionaire’s tax,” an increase in taxes that creates a situation for the wealthy where they owe New Jersey more taxes than they do the federal government annually. The millionaire’s tax puts those who make over $1 million a year in their own heavily taxed bracket. The study finds that, after the passage of the millionaire’s tax, “the net outflow during this period reversed 70% of the wealth gained in the prior four years.”
Read more: Breitbart