As reported by Bloomberg, “NJ Taxes Cause Rich to Move, Economist Says”
And here I thought it was that the “Garden State” is not really a garden, given that it is the only state that has every one of its counties deemed to be “Urban” as defined by the Census Bureau’s Combined Statistical Area.
Or is it because of the great locations to choose from you know Hoboken, Weehawken, Perth Amboy, Trenton, Bayonne, Plainfield, Camden, Paterson, Passaic, and who can forget the jewel in the crown Newark.
Yep, anyone who is making over a million dollars a year wants to leave New Jersey, at least that is what Charles Steindel, the New Jersey state treasury department’s chief economist either implied or stated. What Mr. Steindel did not provide was how many of these lucky, plucky individuals are relocating or have relocated. Additionally he was silent on just where they went.
But it gets even better, this announcement is the results of a survey of subscribers to the state’s online newsletter which according to the article “includes financial advisers to high-wealth clients”. Additionally the article states that, “More than half of the respondents said their clients had recently left or express interest in leaving”. Leaving and expressing interest in leaving are to entirely different propositions; the latter is like asking your teenager if they would like a new car (The answer is Hell Yes). The former is having your teenager spend his or her own allowance/savings to buy that new car (No Fracking Way).
Just speculation, but it might be that given the current real estate crunch that these lucky plucky few cannot sell their leverage houses for enough to allow them to move, and you thought there was not an up side to real estate mess.
A secondary issue maybe finding a mark who is willing to move to New Jersey or who already lives in New Jersey and does not want to leave, who is willing and able to purchase their house for their asking price.
The statement from Mr. Steindel implies that it is a bad idea to raise the taxes on the very rich, because they will just get up and move, or at the very least threaten to get up and move.
I almost feel sorry for these tax refugees, being periodically uprooted and forced to flee their recently financed mansions, as the tax man comes a knocking. I have images of the Clampett’s loading up all their possession in the back of their Escalades and driving off into the night in their search for their next mansion where life is good, the services are excellent, and the taxes are low.
Ah the American Dream.