Tuesday, October 22, 2019

What happens when you tax the rich?

When California raised top tax rates from 10% to 13%:
  • rich people left (probability of moving increased by 40%); and
  • reported less income ($522,000 less)

4 comments:

  1. Has there ever been a study on what the tax rate a state like California could levy? One where citizens would feel MC and MR are at equilibrium. I think it would be interesting if there was a model that could predict based on conditions (weather, cost of living, etc.) what tax rate a state could levy that would not cause migration; meaning where MC=MR. I would predict this model would be significant differences between the states (and even more differences between countries).

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