More than $70 billion in wealth left New Jersey between 2004 and 2008 as affluent residents moved elsewhere, according to a report released Wednesday that marks a swift reversal of fortune for a state once considered the nation’s wealthiest.
Conducted by the Center on Wealth and Philanthropy at Boston College, the report found wealthy households in New Jersey were leaving for other states — mainly Florida, Pennsylvania and New York — at a faster rate than they were being replaced.(eh Macbeth is still there lol)
“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.But economists say there are many other implications for the state’s financial health.In New Jersey, the top 1 percent of taxpayers pay more than 40 percent of the state’s income tax, he said.
Findings from the Boston College report show that about 302,780 households left New Jersey between 2004 and 2008, only slightly lower than the 323,350 households that moved into the state. However, the average net worth of the departing households was about 70 percent higher, at $618,330.
Those who left were also more likely to be older and more educated, with jobs as entrepreneurs or in the finance and professional industries, the study found.
Several years ago,one of the clients stood to make $60 million from stock options in a company that was being acquired by another. Before cashing out, however, the client put his home up for sale, moved to Las Vegas, and “never stepped foot back in New Jersey again,” Hydock said.
“He avoided paying about $6 million in taxes,” he said. “He passed away two years later and also saved a huge estate tax, so he probably saved $7 million.”
source
How is the state supposed to handle large portions of its revenue....considering that the rich make up 1% of the NJ population, but they pay 40% of the taxes..
Conducted by the Center on Wealth and Philanthropy at Boston College, the report found wealthy households in New Jersey were leaving for other states — mainly Florida, Pennsylvania and New York — at a faster rate than they were being replaced.(eh Macbeth is still there lol)
“This study makes it crystal clear that New Jersey’s tax policies are resulting in a significant decline in the state’s wealth,” said Dennis Bone, chairman of the New Jersey Chamber of Commerce and president of Verizon New Jersey.But economists say there are many other implications for the state’s financial health.In New Jersey, the top 1 percent of taxpayers pay more than 40 percent of the state’s income tax, he said.
Findings from the Boston College report show that about 302,780 households left New Jersey between 2004 and 2008, only slightly lower than the 323,350 households that moved into the state. However, the average net worth of the departing households was about 70 percent higher, at $618,330.
Those who left were also more likely to be older and more educated, with jobs as entrepreneurs or in the finance and professional industries, the study found.
Several years ago,one of the clients stood to make $60 million from stock options in a company that was being acquired by another. Before cashing out, however, the client put his home up for sale, moved to Las Vegas, and “never stepped foot back in New Jersey again,” Hydock said.
“He avoided paying about $6 million in taxes,” he said. “He passed away two years later and also saved a huge estate tax, so he probably saved $7 million.”
source
How is the state supposed to handle large portions of its revenue....considering that the rich make up 1% of the NJ population, but they pay 40% of the taxes..
