Fleeing a High Tax State Is Not So Easy
States depend on revenue from their residents and logically, do not want to lose revenue from high income residents. Many of these residents have threatened to move due to the changes in tax law. A recent article published by Bloomberg, “New Yorkers Trying to Flee High State Taxes Find Moving Isn’t So Easy,” illustrates the difficulties residents face when trying to relocate just to reduce their taxes. New York, in particular, has set the bar high to prove you are no longer a resident of the state. The real costs of the tax law changes won’t be realized until 2019, when people file their 2018 tax returns and many have adopted a “wait and see” attitude. According to the article, “In the past 12 months through May, the number of net change-of-address forms filed with the U.S. Postal Service for people moving to Florida from New York, New Jersey and Connecticut has actually declined slightly from recent highs.”
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