A year ago, we described the American Sociological Review’s report, Millionaire Migration and Taxation of the Elite: Evidence from Administrative Data, which dispelled the myth that aggressive taxation of the wealthy will cause massive migration to states with more favorable tax rules. Instead, we wrote, “the report conclude[d] that millionaire tax flight is occurring, but only at the margins of statistical and socioeconomic significance. Indeed, the evidence for elite tax flight rests entirely on high migration rates into Florida, and not to any other low-tax state.”
The topic remains one of interest, particularly in states struggling to find ways to fund essentials like infrastructure, but reluctant to pass new taxes. Connecticut, New York and Massachusetts are three such jurisdictions considering millionaire taxes, as we detailed last month.