Oregon’s Millionaires’ Tax Drives Millionaires Out of State
Paul L. Caron
Wall Street Journal editorial, Ducking Higher Taxes: Oregon’s Vanishing Millionaires:
[quote]Oregon raised its income tax on the richest 2% of its residents last year to fix its budget hole, but now the state treasury admits it collected nearly one-third less revenue than the bean counters projected. …
Congratulations. Instead of $180 million collected last year from the new tax, the state received $130 million. …
One reason revenues are so low is that about one-quarter of the rich tax filers seem to have gone missing. The state expected 38,000 Oregonians to pay the higher tax, but only 28,000 did. Funny how that always happens. These numbers are in line with a Cascade Policy Institute study, based on interstate migration patterns, predicting that the tax surcharge would lead to 80,000 fewer wealthy tax filers in Oregon over the next decade. …
Also: regarding the same TWSJ column:
John Galt Tells Oregon Politicians to Screw Off
December 21, 2010 by Dan Mitchell
The Oregon Ducks will compete for the national championship early next month, so they’ve had a good season. Unfortunately, Oregon’s government isn’t doing nearly so well. Politicians approved a big tax hike on those bad, evil rich people in 2009, and Oregon’s spite-filled voters approved that measure earlier this year.
So how’s is Oregon’s class-warfare approach working? Not surprisingly, the politics of hate and envy is generating poor results. Revenues are much lower than forecast, as anyone with a rudimentary understanding of the Laffer Curve could have explained. The most noteworthy result is that about one-fourth of rich taxpayers have disappeared. Does the name John Galt ring a bell?
None of this should be a surprise. Maryland politicians tried to rape rich taxpayers a couple of years ago and they also crashed on the Laffer Curve.
I’m sure states like AZ and TX are suitably grateful for the stupidity of states like OR and CA.