There have been a number of news stories over the last two years about how the wealthy are fleeing states which have increased taxes on the highest tax brackets.
Iâ€™ll show you this line of thinking is not borne out by the facts, and is irrational to boot.
Hereâ€™s an example; a new story from the Wall Street JournalÂ â€“ titled â€œMillionaires Fleeing Taxesâ€ (August 7, 2012).
The description of the video interview with the reporter (Arden Dale) states â€œWhen states raise taxes millionaires move out.â€Â And the interviewer starts the piece by declaring, â€œMillionaires are fleeing from taxes!â€
Wow, that sounds serious, and certainly very definitive.Â Letâ€™s learn more.
Interviewer â€“ â€œSo tell us, where are the millionaires going?â€
Ms. Dale â€“ â€œPeople donâ€™t want to be taxedâ€¦ but when we looked the actual numbers, the actual studies of whether â€˜Millionaire Flightâ€™ occurs, what we found was that there is no really great statistical data that shows that it does.â€ (Note: while this is being said, a banner on the screen reads â€œMillionaires moving to avoid taxes.â€)