Pragmatic approach to taxing the rich is a big neolib talking point. Purely punitive taxes that reduces overall tax revenue can be more harmful than helpful for less wealthy residents.
MuldartheGreat on
I am sure this will be a levelheaded discussion across reddit.
Mrc3mm3r on
Distinctly unsurprising. I sincerely hope other prominent leaders of blue states/cities take heed.
1sxekid on
Headline implies MA lost 4.2 billion in tax revenue. It means that people making a total of 4.2 billion annually that year left the state. This was a small 8% increase over the previous year.
Garbage headline, somewhat interesting article.
In 2023, the millionaire tax is estimated to have raised 1.3-2 Billion dollars for the state.
If we assume that all of the 4.2 billion in income lost to people leaving the state was taxable, at MA’s highest possible tax (long term capital gains tax, 12%), this fleeing would have cost the state 525 Million. Now of course, not all of that income was taxable, and of the portions that were taxable the majority would have likely been standard income (taxed at 5%) or short term capital gains (taxed at 8.5%). Taking the most highest estimate for money lost and the lowest estimate for money gained by this tax, the state gained a minimum of 600 Million dollars in revenue directly attributable to the tax that year.
BicyclingBro on
My understanding was that there was significantly less capital flight than originally expected in the immediate aftermath of this being passed, with great revenue collections than anticipated.
Have things changed since then?
Manfred_der_Gorilla on
What, Bloomberg of all outlets being dishonest about a wealth tax? I am shocked
6 Comments
Why is this relevant?
Pragmatic approach to taxing the rich is a big neolib talking point. Purely punitive taxes that reduces overall tax revenue can be more harmful than helpful for less wealthy residents.
I am sure this will be a levelheaded discussion across reddit.
Distinctly unsurprising. I sincerely hope other prominent leaders of blue states/cities take heed.
Headline implies MA lost 4.2 billion in tax revenue. It means that people making a total of 4.2 billion annually that year left the state. This was a small 8% increase over the previous year.
Garbage headline, somewhat interesting article.
In 2023, the millionaire tax is estimated to have raised 1.3-2 Billion dollars for the state.
If we assume that all of the 4.2 billion in income lost to people leaving the state was taxable, at MA’s highest possible tax (long term capital gains tax, 12%), this fleeing would have cost the state 525 Million. Now of course, not all of that income was taxable, and of the portions that were taxable the majority would have likely been standard income (taxed at 5%) or short term capital gains (taxed at 8.5%). Taking the most highest estimate for money lost and the lowest estimate for money gained by this tax, the state gained a minimum of 600 Million dollars in revenue directly attributable to the tax that year.
My understanding was that there was significantly less capital flight than originally expected in the immediate aftermath of this being passed, with great revenue collections than anticipated.
Have things changed since then?
What, Bloomberg of all outlets being dishonest about a wealth tax? I am shocked