Friday, April 22, 2011

Take THAT, Talking Point!

From far-left liberal rag The Wall Street Journal: Apparently the millionaires aren't so inclined to escape higher taxes as everyone says.

The study, by sociologists Cristobal Young at Stanford and Charles Varner at Princeton, studied the migration patterns of New Jersey’s millionaires before and after 2004, when the state imposed a “millionaire’s tax” that raised rates on those earning $500,000 or more to 8.97% from 6.37%.

The study found that the overall population of millionaires increased during the tax period. Some millionaires moved out, of course. But they were more than offset by the creation of new millionaires.

The study dug deeper to figure out whether the millionaires who were moving out did so because of the tax. As a control group, they used New Jersey residents who earned $200,000 to $500,000–in other words, high-earners who weren’t subject to the tax. They found that the rate of out-migration among millionaires was in line with and rate of out-migration of submillionaires. The tax rate, they concluded, had no measurable impact.

“This suggests that the policy effect is close to zero,” the study says.
And remember, this is in NEW JERSEY, where everyone is always looking for a reason to move out.

Still, let's just take the word of all those people who say that if we roll back tax cuts they'll fire a bunch of people. I mean, the Bush tax cuts have been in place for years and the job market has never been better. Case closed!

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