Nov 30, 2012 8:06 PM GMT
http://www.cnbc.com/id/49623297/Taxes_Don_t_Drive_Out_the_California_Rich_StudyThe study, by sociologists at Stanford and Princeton, looked at two tax changes in California, a 1996 tax cut on high-income filers and a 2005 levy called the Mental Health Services Tax that took one percent of income over $1 million. Using tax-return data, the researchers examined how the changes affected “millionaire migration” in or out of the state before and after the tax laws were passed.
The research showed that millionaires not only were unmoved, so to speak, by their taxes being raised, “the highest-income Californians were less likely to leave the state after the millionaire tax was passed,” wrote Charles Varner and Cristobal Young in their report.
In fact, the richer the Californian, the more likely he or she was to stay, the study found. Nor did the data suggest that lowering taxes lured millionaires to the state. (Read more: Millionaire 'Munger Sandwich' Squeezes Gov. Brown)
The pair previously studied millionaire migration in New Jersey, with largely the same results. But California's dynamic, tech-based economy may be, if anything, a better testing ground for the notion that job creators are forced out by taxation. “The presumption that exceptionally skilled, monied, and entrepreneurial individuals are also exceptionally mobile is debatable,” Varner and Young concluded.