Does State Taxation Cause the Wealthy to Move to Different States?

Does State Taxation Cause the Wealthy to Move to Different States? Episode 234 – States with high income and estate taxes may cause the wealthy to move to another state with one or the other, but not both taxes. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 234   Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, Does State Taxation Cause the Wealthy to Move to Different States? The financial news company, Bloomberg, recently reported[i] on a study published in the May 2023 issue of the American Economic Journal: Economic Policy[ii], that revealed some interesting data on the cause and effect of taxes on the ultra-wealthy moving to different states. The study was conducted by Enrico Moretti, an economics professor at the University of California, Berkeley, and Daniel J. Wilson, an economist for the Federal Reserve Bank of San Francisco. The study analyzed the behavior of hundreds of billionaires since 2001 and found that of the dozen states that had a state estate tax, over 21% of the billionaires moved to other states that did not have a state estate tax. The Bloomberg article noted: “States controlled by Democrats have been raising taxes on the wealthy, arguing that it spreads wealth and funds services like education that boost growth and innovation over the long term. Those run by Republicans have been cutting levies