Are the Rich Leaving New Jersey?
New Jersey’s income taxes, estate taxes and property taxes are driving the wealthiest residents out of the state, a new study suggests.
The RegentAtlantic Capital report stated New Jersey’s high-income residents are learning to live elsewhere once they realize the amount of money they can save on taxes.
“New Jersey competes with other states, and not the federal government,” said David Bugen, managing partner. “The tax structure in New Jersey encourages high-income residents to move to Pennsylvania and still work in New Jersey.”
The report noted a high-wage earner could save $1.8 billion over 25 years by living in Pennsylvania instead of the Garden State.
New Jersey’s estate tax was also criticized by the report. The exemption for the tax on the deceased is $675,000 in New Jersey. No such charge exists in other locations, such as Florida.
“New Jersey is the most expensive state in this country in which to die,” Bugen said.
Unlike the majority of other states, New Jersey still prohibits residents from deducting charitable gifts on their state income tax return. Bugen suggested the state “does not encourage philanthropy,” creating another reason for an exodus of those with lots of money to spend. (Flammia/NJ101.5)
