CHART: Millionaires Don’t Leave States Due To High Taxes

A favorite conservative myth is that raising taxes on millionaires at the state level will chase those millionaires away to other states. That was the rationale Gov. Chris Christie (R-NJ) used to justify vetoing a millionaires surtax…twice.

However, the data doesn’t back up that claim. Steve Roth at Angry Bear used this chart showing that millionaires simply don’t congregate in low-tax states. Roth found that “of the 12 states with the highest concentration of millionaires, 10 (83%) have above- or at-trend (in this case, median) income tax rates.”

This jibes with a report from the Political Economy Research Institute at the University of Massachusetts, Amherst which showed that “the evidence available in the research literature suggests that the worst fears of the policy debates over raising additional revenue from high-income households to sustain spending on public services are unlikely to materialize. The rich will not go on strike. They will not cease working, stop investing, or even move.”