Thursday, April 17, 2008

The Rich: The Most Mobile People in World

Entrepreneur.com--While income, capital gains, and estate taxes are key concerns, watch out for state taxes. New York State is considering a millionaire's tax—something tried in New Jersey with mixed results.

"People picked up and moved," Jack Meola, a tax attorney and partner at Amper Politziner & Mattia says of the New Jersey experience. "The rich are the most mobile people in the world. I have clients with no state domicile. They're doing business all over the world. They've put their homes in trusts, so they personally have no jurisdiction. One client lives on a boat. Most move to nontaxing jurisdictions, like Las Vegas and Florida."

These mobile individuals set up trusts so that when their businesses are sold, they don't feel a tax pinch.

For the state, the effort backfires, he notes. Diminishing populations of wealthy individuals result in a trickle-down effect that builds pressure on low-income people to carry the tax impact.

Economics 101: If you tax something, you get less of it.

(Via Taxing Tennessee)

2 Comments:

At 4/25/2008 7:39 AM, Blogger Shawn said...

as a landscape architect in florida, who would work gladly with the incoming millionaires, may I write to the new york congressmen and encourage them to proceed with their "brilliant" plan?

 
At 9/02/2008 12:41 AM, Anonymous Anonymous said...

IF MILEY IS ONE OF THE MOST RICH PEOPLE I THINK ITS PREETY COOL

 

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