Friday, September 5, 2014

New York State Has Slowest Growth in Millionaires In US

From the Tax Foundation, "New Study Finds New York Growth in Millionaires Slowest in the Nation" by Josh D. McCaherty and Lyman Stone:
The Empire Center, a nonpartisan think tank in New York, released a report today suggesting that New York has lagged behind the rest of the nation in making new millionaires. From 2011-2012, the United States on the whole saw a 29 percent increase in the number of millionaire tax filers. New York however saw only a 14.6 percent increase in the same period, the lowest rate of growth in the country.

The report further points out that New York had also "trailed the national rate of increase in the number of taxpayers earning AGI of $200,000 or more." Authors E.J. McMahon and Daniel Russo argue that these are troubling indicators and point to weaknesses in the state’s economic growth and wealth creation. In fact, there is good reason to believe taxes may play a role in slowing the rate at which states gain new millionaires.

One deterrent for the state’s wealth creation is its "Millionaires Tax."
At least some portion of New York’s slow millionaire growth may be due to migration. This can be seen from our state migration map, which shows that from 2000-2010, New York had a net loss of $45.6 billion in personal income from people leaving the state. While the state remains a leader in terms of millionaires per capita for now, the state’s continuing high taxes may help other states take the lead. Just since 2010, New York’s share of millionaires nationwide fell from 12.7 percent to 11.2, while Texas’ rose from 8.5 percent to 9.3.

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