Here is yet another unintended consequences of high taxes: “tax refugees.” According to the New York Post,
New Yorkers are fleeing the state and city in alarming numbers — and costing a fortune in lost tax dollars, a new study shows.
More than 1.5 million state residents left for other parts of the United States from 2000 to 2008, according to the report from the Empire Center for New York State Policy. It was the biggest out-of-state migration in the country.
One destination for these emigrants is Florida, where there is no state income tax. The second destination for refugees may seem an unlikely one: New Jersey. But this makes sense when you look at its tax rates. In the Garden State, those earning between $75,000 and $400,000 are taxed at a rate of 6.37. At the bottom end, those who are between $20,000 and $35,000 are taxed at 1.75 percent. In New York, by contrast, anyone who makes an income between $20,000 and $200,000 is taxed at the same 6.85 percent rate while those in the $200,000 to $500,000 bracket owe 7.85 percent of their income in state taxes. For a state-by-state listing of tax rates, click here.