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 nationâ€™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 â€” mainly Florida, Pennsylvania and New York â€” at a faster rate than they were being replaced.
â€œThe wealth is not being replaced,â€ said John Havens, who directed the study. â€œItâ€™s above and beyond the general trend that is affecting the rest of the northeast.â€
This was not always the case. The study â€“ the first on interstate wealth migration in the country â€” 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 stateâ€™s tax structure â€” including increases in the income, sales, property and â€œmillionaireâ€ taxes.
â€œThis study makes it crystal clear that New Jerseyâ€™s tax policies are resulting in a significant decline in the stateâ€™s wealth,â€ said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.