Travel not so taxing for US millionaires

There is no evidence to support the myth that millionaires migrate to avoid tax changes, according to a joint study by Stanford and Princeton Universities.

The research showed personal connections and business contacts are more highly valued than tax conditions by affluent people trying to decide where to live.

The study unpacked tax records for California from 1992 to 2009 and found migration of millionaires in and out of the state had almost no relationship with tax rate fluctuations.

Read more at Princeton University and Stanford University

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2 Comments sorted by

  1. Dennis Alexander

    logged in via LinkedIn

    Now, the trick might be to find the threshold at which tax does outweigh other factors in location of the very rich - a government then stays just below the threshold and reaps the revenue benefits. Unfortunately, I can't see too many economists or rich people viewing this as the entirely rational proposition that it is.

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  2. Robert Tony Brklje

    retired

    They most certainly do. How else can they benefit by those trillions of dollars buried in tax havens. They travel to spend it, in fact that is their standard way of cheating on taxes. The easiest way for undeclared income to suddenly appear and the disappear as it is spent on luxury items in locations other than where the money should have accrued a tax bill.

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