04 Feb 2010

$70 Billion Left New Jersey

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Liberal blue state soak-the-rich tax policies have real consequencs, as New Jersey is discovering the hard way. New Jersey Business News article.

Can you imagine what the wealth drain from California over the same period must look like?

More than $70 billion in wealth left New Jersey between 2004 and 2008 as affluent residents moved elsewhere, according to a report released Wednesday that marks a swift reversal of fortune for a state once considered the nation’s wealthiest.

Conducted by the Center on Wealth and Philanthropy at Boston College, the report found wealthy households in New Jersey were leaving for other states — mainly Florida, Pennsylvania and New York — at a faster rate than they were being replaced.

“The wealth is not being replaced,” said John Havens, who directed the study. “It’s above and beyond the general trend that is affecting the rest of the northeast.”

This was not always the case. The study – the first on interstate wealth migration in the country — noted the state actually saw an influx of $98 billion in the five years preceding 2004. The exodus of wealth, then, local experts and economists concluded, was a reaction to a series of changes in the state’s tax structure — including increases in the income, sales, property and “millionaire” taxes.

“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.

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One Feedback on "$70 Billion Left New Jersey"

Richard

There are better ways to opt out of wealth taxes than picking up and moving everything you own to another state.
Don’t get me wrong if you simply hate the state you are in then move and move fast. But if there is something that you’ll miss, then don’t move.
Realize that states compete. Certainly Mayor Daley of Chicago understands this from his reaction to the New Oregon Wealth Tax.
You might own a house in NJ, but you can choose to vacation in FL, PA, or HI they are all competing for your vacation dollars.
In a similar vein you can own a business in NJ but vacation your profits in . . . maybe Nevada. . .
But that is far too simplistic an answer to be of real value. If you want the more correct answer contact me.



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