Rich People Are Fleeing Connecticut

[Swordsmyth]

Tax payers – particularly wealthy ones – are leaving Connecticut for states like Florida, where there is no income tax, and New York City, where taxes are high but at least you can order Chinese food at 4 am. Indeed, as the Hartford Courant (http://www.courant.com/opinion/editorials/hc-ed-tax-migration-0102-20180102-story.html) points out in an editorial, the latest data reveal that Connecticut is in the middle of a taxpayer exodus.
Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI.

https://www.zerohedge.com/sites/default/files/inline-images/2018.01.04connecticut.JPG (https://www.zerohedge.com/sites/default/files/inline-images/2018.01.04connecticut.JPG)
People who moved to Connecticut brought with them only about $3.36 billion in AGI. The total net loss to Connecticut: $2.7 billion. In one year. That was in the top five of all states, regardless of population.
And that was before this year’s budget battle, which nearly precipitated dramatic cuts to municipal services. The taxes and cutbacks that lawmakers agreed to in order to pass a compromise budget bill will likely anger more monied nutmeggers.
Connecticut collected $6.85 billion in income tax from the 2015 tax year, or 4.3% of the $161 billion in AGI reported from all filers. If that same ratio held true in 2016, then the loss of $2.7 billion in AGI would have meant an actual loss of more than $100 million in income tax revenue.

https://www.zerohedge.com/sites/default/files/inline-images/2018.01.04ctdeparting.JPG (https://www.zerohedge.com/sites/default/files/inline-images/2018.01.04ctdeparting.JPG)
While that’s not a whole lot relative to the state’s 20 billion budget, it’s still a not-insignificant amount of money.
As the paper’s editorial board warned: "Legislators, this is strong evidence that taxing residents at high rates is becoming counterproductive."


More at: https://www.zerohedge.com/news/2018-01-04/rich-people-are-fleeing-connecticut

[dannno]

As the paper’s editorial board warned: "Legislators, this is strong evidence that taxing residents at high rates is becoming counterproductive."



The true progressive will claim the problem is that other states don't tax enough, aye comrad?

[Swordsmyth]

The true progressive will claim the problem is that other states don't tax enough, aye comrad?

Of course, we need the feds to force all states to have the same taxes.

[Zippyjuan]

The true progressive will claim the problem is that other states don't tax enough, aye comrad?

Interesting to see that the #1 destination from Connecticut is New York- a higher tax state. Florida and California possibly being chosen for the weather to retire in (median age is 40 and records are retiring). http://www.middletownpress.com/news/article/CENSUS-Median-age-hits-40-in-Connecticut-11862765.php

Is the tax rate the #1 issue for people leaving?


https://www.theatlantic.com/business/archive/2017/07/connecticut-tax-inequality-cities/532623/


Meanwhile, the companies leaving Connecticut aren’t exactly headed to El Paso. UBS has moved to Manhattan. GE has moved to Boston. Leaving Connecticut because of the high taxes and relocating to Boston is like leaving Connecticut because of the cold winters and moving to… well, Boston.


The rise and fall of Connecticut fits into the story of American cities. In the 1970s, American metros were suffering a terrible crime wave, and New York was dropping dead. That meant boom times for New York’s suburbs and southwestern Connecticut.* Headquarters or major offices from more than 100 Fortune 500 companies fled New York City for leafy suburban campuses, according Aaron M. Renn, a senior fellow at the Manhattan Institute. But now many of those companies are moving back, lured by newly lower-crime cities and the hip urban neighborhoods where the most educated young workers increasingly want to live. At the end of the 20th century, New York City’s pain was Connecticut’s gain. Now, New York City’s (and Boston’s) gain is Connecticut’s pain.


High taxes, or even the reputation of high taxes, might be accelerating this population shift. But it’s just one variable among many—including temperature, cost of living, and proximity to cities—that’s pushing the entire U.S. population away from the sort of suburbs that define Connecticut. As Henry Grabar writes in Slate, there are states without major cities that have added jobs recently. But Connecticut has neither “the sunny days of Arizona [nor] the regulatory nonchalance of Alabama.”

In the biggest picture, Connecticut is a victim of two huge trends—first, the revitalization of America’s great rich cities and second, the long-term rise of hot, cheap suburbs. But Connecticut’s cities are not rich or great; its weather is not hot year-round; and its cost-of-living is not low. The state once benefited from the migration of corporations and their employees from grim and dangerous nearby metros, but now that wave is receding. To get rich, Connecticut offered a leafy haven where America’s titans of finance could move. To stay rich, it will have to build cities where middle-class Americans actually want to stay.

[dannno]

Is the tax rate the #1 issue for people leaving?

Could be.

If you would rather live in NY, closer to work, but you choose to live in CT because it's pretty nice and they have slightly lower taxes than NY, then CT raises their taxes, that might push you back into choosing NY and avoid the commute.

Although I guess it depends on which state you live in to whether you would file your taxes in your home state or the one you work in, I dunno the laws there, but the same thing still applies kinda.

[Swordsmyth]

Interesting to see that the #1 destination from Connecticut is New York- a higher tax state. Florida and California possibly being chosen for the weather to retire in (median age is 40 and records are retiring). http://www.middletownpress.com/news/article/CENSUS-Median-age-hits-40-in-Connecticut-11862765.php

Is the tax rate the #1 issue for people leaving?

https://www.theatlantic.com/business/archive/2017/07/connecticut-tax-inequality-cities/532623/

What dannno said and it doesn't matter if it is the #1 issue, if people have other reasons they might want to move but they are not quite enough to get them to upset their lives by moving and you raise taxes many of them are going to leave and taxes will be the proximate cause whether they are the primary cause or not.

[Zippyjuan]

What dannno said and it doesn't matter if it is the #1 issue, if people have other reasons they might want to move but they are not quite enough to get them to upset their lives by moving and you raise taxes many of them are going to leave and taxes will be the proximate cause whether they are the primary cause or not.

So basically it doesn't matter that people are on net moving from Connecticut or why.

[Swordsmyth]

So basically it doesn't matter that people are on net moving from Connecticut or why.

It does matter.

Connecticut is going to collapse and high taxes started the domino effect.

[donnay]

It does matter.

Connecticut is going to collapse and high taxes started the domino effect.

I don't blame people. New York, New Jersey and CT have outrageous property taxes! They get what they deserve.

[Krugminator2]

It is common for all blue states.

https://www.nytimes.com/2016/05/01/business/one-top-taxpayer-moved-and-new-jersey-shuddered.html


One Top Taxpayer Moved, and New Jersey Shuddered



The New Jersey resident (unnamed by Mr. Haines) is the hedge-fund billionaire David Tepper. In December, Mr. Tepper declared himself a resident of Florida after living for over 20 years in New Jersey. He later moved the official headquarters of his hedge fund, Appaloosa Management, to Miami.

New Jersey won’t say exactly how much Mr. Tepper paid in taxes. But according to Institutional Investor’s Alpha, he earned more than $6 billion from 2012 to 2015. Tax experts say his move to Florida could cost New Jersey — which has a top tax rate of 8.97 percent — hundreds of millions of dollars in lost payments.

Beyond the debate on taxing the rich, Mr. Tepper’s move is a case study in how tax collections are affected when income becomes very highly concentrated. With the top tenth of 1 percent of the population reaping the largest income gains, states with the highest tax rates on the rich are growing increasingly dependent on a smaller group of superearners for tax revenue.

[kahless]

They tax all property in CT including your cars, boats and business assets. So they make up for the lower income tax. Real pain in the ass.

I remember the tax revolt when they were setting cars on fire in Hartford since no one wanted the income tax. But the no good SOB's passed it anyway.

[oyarde]

I would not live there . I would have to go back to just work to pay taxes .

[Free in CT]

Connecticut has high income and property taxes, and a sales tax on everything except food purchases. You can't even buy a pair of shoes in this state without paying the sales tax. Add to all of this the third highest gas tax in the country, the highest bonded debt (per capita) in the nation, and according to a new study by the American Legislative Exchange Council, the most underfunded pension system in the country at 19 percent funded. Pension fund liabilities, retiree healthcare costs and debt service now comprise more than 50 percent of the state budget with worse to come.

A financial meltdown is inevitable and the wealthy are fleeing so they won't get fleeced, just that simple.

[oyarde]

Connecticut has high income and property taxes, and a sales tax on everything except food purchases. You can't even buy a pair of shoes in this state without paying the sales tax. Add to all of this the third highest gas tax in the country, the highest bonded debt (per capita) in the nation, and according to a new study by the American Legislative Exchange Council, the most underfunded pension system in the country at 19 percent funded. Pension fund liabilities, retiree healthcare costs and debt service now comprise more than 50 percent of the state budget with worse to come.

A financial meltdown is inevitable and the wealthy are fleeing so they won't get fleeced, just that simple.

Sounds like Illinois .

[Anti Federalist]

In the biggest picture, Connecticut is a victim of two huge trends—first, the revitalization of America’s great rich cities and second, the long-term rise of hot, cheap suburbs. But Connecticut’s cities are not rich or great; its weather is not hot year-round; and its cost-of-living is not low. The state once benefited from the migration of corporations and their employees from grim and dangerous nearby metros, but now that wave is receding. To get rich, Connecticut offered a leafy haven where America’s titans of finance could move. To stay rich, it will have to build cities where middle-class Americans actually want to stay.

Good.

The more people stuffed into a stack - a - prole boxes in the big cities, instead of moving to my state and fucking up the program, the better.

Ya'll keep telling yourself that paying $12,000 a year in property taxes is "normal".

Muh skools.

Muh roadz.

Muh copz.

Pffft...my ass.

[Schifference]

If you are a poor minority illegal alian Connecticut is a tax haven for you. Even free college.

[tod evans]

Put a wall up and keep 'em in.

[fedupinmo]

If you are a poor minority illegal alian Connecticut is a tax haven for you. Even free college.

They make great social security numbers up there... talking 'bout you , Barry!

[goldenequity]

They need to follow the Federal model:
If you try and give up your Connecticut citizenship and flee to a different State haven...
just 'follow' them for the next 10 years and require them to file in Connecticut or face charges/forfeiture.
Done.

[kahless]

Good.

The more people stuffed into a stack - a - prole boxes in the big cities, instead of moving to my state and fucking up the program, the better.

Ya'll keep telling yourself that paying $12,000 a year in property taxes is "normal".

Muh skools.

Muh roadz.

Muh copz.

Pffft...my ass.

Muh Pensions goes before Muh Skools. We are all life long slaves to government employees in states like NY, CT.