The Resource Millionaire migration and state taxation of top incomes : evidence from a natural experiment

Millionaire migration and state taxation of top incomes : evidence from a natural experiment

Label
Millionaire migration and state taxation of top incomes : evidence from a natural experiment
Title
Millionaire migration and state taxation of top incomes : evidence from a natural experiment
Creator
Subject
Language
eng
Summary
This paper examines the migration response to a millionaire tax in New Jersey, which raised its income tax rate on top earners by 2.6 percentage points to 8.97 percent, one of the highest tax rates in the country. Drawing on unique state tax micro-data, the authors estimate the migration response of millionaires to the rate increase, using a difference-in-differences estimation strategy. The results indicate little responsiveness, with semi-elasticities generally below 0.1. Tax-induced migration is estimated to be higher among people of retirement age, people living on investment income rather than wages, and people who work (and pay tax) entirely in-state. The tax is estimated to raise $1 billion per year and modestly reduce income inequality
Citation source
In: National tax journal. - Washington. - Vol. 64 (2011),
http://library.link/vocab/creatorName
  • Young, C. (Cristobal)
  • Varner, C
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • state tax
  • tax rate
  • migration
  • tax competition
Label
Millionaire migration and state taxation of top incomes : evidence from a natural experiment
Instantiates
Publication
Label
Millionaire migration and state taxation of top incomes : evidence from a natural experiment
Publication

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