Tuesday, May 18, 2010
Is it Cheaper to Leave NJ or Stay?
Prevailing wisdom insists that increasing taxes on New Jersey's 16,000 millionaires will cause an irreversible exodus along with the loss thousands of potential jobs in the companies they run. However records appear to indicate otherwise.
Actual tax return data from the New Jersey Department of the Treasury confirm that the number of tax returns with incomes of $500,000 and above has been growing. The current recession may tell a different story in more recent years, but in 2007 (the most recent data available), 48,500 tax returns were filed with incomes of $500,000 or more. This is nearly twice the number (25,500) filed in 2002.
In fact, it seems to be the middle class that is most sensitive to tax pressures, as demonstrated in this video by TheStar Ledger's Brian Donohue. Scroll down for the reader comments that follow,