The rich are fleeing Connecticut in droves

[SirLinksALot]

SOURCE: AMERICAN THINKER

URL: http://www.americanthinker.com/blog/2018/01/the_rich_are_fleeing_connecticut_in_droves.html

by Rick Moran


Cause and effect. In the case of Connecticut, high taxes are leading to an exodus of wealthy residents, reducing the tax take for a state already struggling trying to balance its budget.

We've seen this in other states, including Illinois, New York, and California. But in Connecticut, the exodus appears to be especially heavy among rich taxpayers, leading to a huge loss in revenue that the state can ill afford.

From the Hartford Courant:

It's common knowledge now that Connecticut is seeing an exodus of residents. But are the rich leaving? According to the latest IRS data, they are.

Legislators who hope to solve the state's budget crisis with ever-higher taxes should pay attention. The data are clear:

Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI. 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.

Connecticut realized $6.85 billion in income tax from the 2015 tax year, or 4.3 percent 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.

In one year. That doesn't account for all of the problems in a $20 billion budget, but it's a serious dent, and it's indicative of a deep problem: Many of Connecticut's wealthy residents are moving out, and they're taking their money with them.

Legislators, this is strong evidence that taxing residents at high rates is becoming counterproductive.

To that I say, "Duh." It isn't a surprise to anyone - except liberals and 4 year old kids - that there is a level of taxation that becomes unbearable to everyone - including the rich.

The states that poached the most taxpayers from Connecticut were New York (8,202 tax returns) and Florida (7,944). The average adjusted gross income for those who left for New York was $111,653. That's pretty bad, but it's nowhere near as shocking as Florida, where the average return from former Connecticut residents was $253,187 in adjusted gross income.

That means more than $2 billion in income moved from Connecticut to Florida from 2015 to 2016, more than twice as much money as moved to New York.


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[TomSea]

So, the article reads that New York state is where most of the taxpayers moved, followed closely by Florida.  I thought NY State also had pretty high taxes but maybe that is more to do with NYC.

[Right_in_Virginia]

So, the article reads that New York state is where most of the taxpayers moved, followed closely by Florida.  I thought NY State also had pretty high taxes but maybe that is more to do with NYC.

Yeah, but Cuomo's going to wave a magic wand and fix this.   

[edpc]

So, the article reads that New York state is where most of the taxpayers moved, followed closely by Florida.  I thought NY State also had pretty high taxes but maybe that is more to do with NYC.

Many of the relocating Connecticut residents work on Wall St. or in media/entertainment.  They still need quick access to NYC.

[dfwgator]

In search of another nest to foul.

[IsailedawayfromFR]

Many of the relocating Connecticut residents work on Wall St. or in media/entertainment.  They still need quick access to NYC.

Yep, New Yorkers once domiciled to Ct in order to escape NY income taxes.  When I worked in NY, I did the same as Ct had no income taxes.

That has changed and the rationale to be so far away from work is no longer valid.

[WingNot]

In search of another nest to foul.

 

[Oceander]

So, the article reads that New York state is where most of the taxpayers moved, followed closely by Florida.  I thought NY State also had pretty high taxes but maybe that is more to do with NYC.

NY state does have high taxes, but they get really high if you live in NYC because then you pay NYC income tax as well.  My guess is the folks who moved to NY moved to be closer to their jobs in NYC, but stayed outside of NYC, and also outside of Yonkers, which also has a local income tax. 

[corbe]

NY Taxpayers Built $90M Factory For Firm That Walked Away, Didn’t Create A Job

Follow the money trail to Albany.

Via Syracuse Com:


In 2014, the development arm of SUNY Polytechnic Institute agreed to build, with $90 million in state money, a factory in DeWitt for an LED light bulb manufacturer.

The company, California-based Soraa, agreed to create 250 full-time, high-tech jobs at Collamer Crossing Business Park and to encourage Soraa contractors and suppliers to create another 170 jobs in Central New York.

In return, the company would be allowed to lease the factory for $1 a month for 10 years.

But the deal with SUNY Poly’s Fort Schuyler Management Corp. did not require Soraa to spend any of its own money to build or equip the factory. And it contained no penalties if the company did not occupy the building or create the promised jobs. The company never even signed a lease.

<..snip..>

https://www.weaselzippers.us/370249-ny-taxpayers-built-90m-factory-for-firm-that-walked-away-didnt-create-a-job/