Oregon finds tax doesn’t raise the money
Attempting to close its budget gap without doing what it should have done — cut spending — Oregon raised its “piggy-back” state income tax on the richest 2 percent of its residents last year.As a result — Nevada legislators, please note — Oregon tax receipts are now … falling.
It seems that millionaires, regardless where they reside, aren’t stupid. Unless they inherited their money, millionaires are some pretty smart folks. They wouldn’t be millionaires if they weren’t. So what happens when the state decides to stick it to their millionaires? They leave—or move their money into areas with a lesser tax rate or perhaps not taxable. Some choose tax defeating alternatives like moving assets into trust funds or out of the state where income derived from those funds are taxed elsewhere. There are all sorts of options and millionaires and their financial advisers are finding them. The new question is, “What does the taxing authority consider ‘taxable income’? What if these assets were owned by a trust, or transferred in some different way … ?”
If BO had followed his party’s demands, I expect that off-shore accounts in the Bahamas and in Switzerland would have been growing about now.
(H/T to George in Las Vegas.)