Tax flight a myth?
by David Sommerstein on March 19th, 2009
There are plenty of staple explanations for Upstate New York’s seemingly eternal economic doldrums. “We’re losing our youth.” “The brain drain.” “Our high taxes are forcing people to flee.”
Wait, check that last one. The New York Times find little evidence that high taxes on the wealthy, mobile class pushes them to move.
That should be welcome news for Gov. Paterson and Democratic leaders in Albany, who appear to be resigned to raising taxes on the wealthy to help close the $15 billion dollar budget gap. If they do, New York will be a good place to test the theory of “rich drain”.
