One Top Taxpayer Moved, and New Jersey Shuddered

[Kilgore]

Last month, during a routine review of New Jersey’s finances, one could sense the alarm. The state’s wealthiest resident had reportedly “shifted his personal and business domicile to another state,” Frank W. Haines III, New Jersey’s legislative budget and finance officer, told a State Senate committee. If the news were true, New Jersey would lose so much in tax revenue that “we may be facing an unusual degree of income tax forecast risk,” Mr. Haines said.

The New Jersey resident (unnamed by Mr. Haines) is the hedge-fund billionaire David Tepper. In December, Mr. Tepper declared himself a resident of Florida after living for over 20 years in New Jersey. He later moved the official headquarters of his hedge fund, Appaloosa Management, to Miami.

New Jersey won’t say exactly how much Mr. Tepper paid in taxes. But according to Institutional Investor’s Alpha, he earned more than $6 billion from 2012 to 2015. Tax experts say his move to Florida could cost New Jersey — which has a top tax rate of 8.97 percent — hundreds of millions of dollars in lost payments.

“If you’re making hundreds of millions of dollars and you’re paying close to 10 percent to the state of New Jersey, you do the math,” said Jon Bramnick, the Republican leader in the New Jersey Assembly. “You can save millions a year by moving to Florida. How can you blame him?”

http://mobile.nytimes.com/2016/05/01/business/one-top-taxpayer-moved-and-new-jersey-shuddered.html

[hollysmom]

1. oh please people move all the time and this is being used to get rid of the

estate tax on estates with 6 million dollars value - basically another tax break for the rich. oooh oooh rich people are leaving the state. yeah right, but rich people are also moving into the state.

I know a couple that left the state to move to Florida, they were thrilled their house here sold for so much and they saved so much buying their new house, but the heat and humidity, lack of "free" services and constant air conditioning got to them and they wanted to move back, but they could not afford to do it. they spent a lot of their profit, on house sale difference and could not afford to move back, but they do come and visit now.

things to consider, I live in a high tax area, but 25% of my town is park land - it is all the low land, so when there is flooding it is confined to the parks - duh, so our house insurance is lower, and there is a "free" town bus, so if you are old or too young to drive, you can still get around. there is a lot of "free" things for children to do here, but the every 1/2 mile there is a playground, there are regular town fairs, there are "free" out door movies and music in the summer, there are "free" services for seniors from snow shoveling through raking leaves through rides to doctor appointments. You don't have to drive as a senior, you can still get around, there is a "free" bus to local malls. They didn't have these in Florida but then they didn't pay much taxes. There are even free or minimal charges for medical exams for residence a few times a year. I could have paid 200 dollars to the vet for an exam and rabies shot, or I could get it for free at the firehouse.

Seethe difference here. You can pay through your taxes or out of pocket later.

[haikugal]

2. Well said, thanks for that. nt