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Editorial: Connecticut's Money Is Moving Out

Discussion in 'Coffee Shack (Daily News/Economy)' started by Goldhedge, Jan 6, 2018.



  1. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    Editorial: Connecticut's Money Is Moving Out

    video

    Connecticut's money is moving out — and a lot of it is moving to Florida.

    It's common knowledge now that Connecticut is seeing an exodus of residents. But are the rich leaving? According to the latest IRS data, they are.

    Legislators who hope to solve the state's budget crisis with ever-higher taxes should pay attention. The data are clear:

    Those who moved out of Connecticut from 2015 to 2016 took with them more than $6 billion in adjusted gross income, or AGI. People who moved to Connecticut brought with them only about $3.36 billion in AGI. The total net loss to Connecticut: $2.7 billion. In one year. That was in the top five of all states, regardless of population.​

    Connecticut realized $6.85 billion in income tax from the 2015 tax year, or 4.3 percent of the $161 billion in AGI reported from all filers. If that same ratio held true in 2016, then the loss of $2.7 billion in AGI would have meant an actual loss of more than $100 million in income tax revenue.

    In one year. That doesn't account for all of the problems in a $20 billion budget, but it's a serious dent, and it's indicative of a deep problem: Many of Connecticut's wealthy residents are moving out, and they're taking their money with them.

    Legislators, this is strong evidence that taxing residents at high rates is becoming counterproductive.

    Here's more evidence:

    The average adjusted gross income for all filers who moved out of Connecticut last year was $123,377 — the highest in the nation and far above the state's median income. The average AGI per return for those who moved in was $92,677, or $30,699 less than those who moved out — the biggest difference in the nation. Put another way, those who moved in were not enough in number, or in income, to replace the expats.​

    Connecticut's financial problems are serious. We have crushing pension obligations, too long ignored. The state must find a way to deal with them without taxing the stuffing out of the rich. That is not a guaranteed way to increase income, as the IRS data show.​

    The states that poached the most taxpayers from Connecticut were New York (8,202 tax returns) and Florida (7,944). The average adjusted gross income for those who left for New York was $111,653. That's pretty bad, but it's nowhere near as shocking as Florida, where the average return from former Connecticut residents was $253,187 in adjusted gross income.

    That means more than $2 billion in income moved from Connecticut to Florida from 2015 to 2016, more than twice as much money as moved to New York.

    The overall trend of richer people leaving Connecticut has been increasing over the last five years, according to the IRS data. The total number of tax filers and their average AGI for people who moved out of Connecticut was higher last year than at any time since before 2011-12. For example: From 2012 to 2013, more than 48,000 tax filers had moved out of Connecticut, nearly as many as moved out from 2015 to 2016, but the average return was about $112,000 in AGI, compared to over $123,000 last year.

    Goodbye, rich people.

    It's not that Florida doesn't have its problems — it does. But it has a unique situation: It can prop up most of its state government on sales tax revenues and attract residents by avoiding an income tax.

    Connecticut's financial problems are serious. We have crushing pension obligations, too long ignored. The state must find a way to deal with them without taxing the stuffing out of the rich. That is not a guaranteed way to increase income, as the IRS data show.

    The legislature's priority in 2018 must be to tackle this problem that they've hit the snooze button on for decades.
     
  2. latemetal

    latemetal Platinum Bling Platinum Bling

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    The sad fact of life is northerners move down to Florida and expect the same thing they had up north, hell, at least half the roads aren't paved, just graded with a grader once or twice a year...[​IMG]and if you want an education for your children, well, most of these cluckers can't spell to save their ass. Cheap is cheap for a reason...
     
  3. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    Sometimes taxes are just too damn high!

    In NJ and NY they are so high that you pay $1000/month taxes just to live in a house.

    When do you get to 'retire'...?


    Study: New York ranks in top 3 most moved-out-of states for 7th year in a row
    by Luke Parsnow

    Tuesday, January 2nd 2018

    [​IMG]
    New York State (MGN Online){ }

    New York continues to be one of the leading states in the country where people are moving out of.

    According to United Van Lines, a St. Louis, Missouri-based moving company, New York ranked as the third most moved-out-of state in 2017, ahead of only Illinois and New Jersey. Despite the ranking, it is actually a continued improvement from previous recent years. New York ranked second in 2015, 2014, 2013 and 2012, but remains in the top three states people are fleeing for the seventh year in a row.

    During 2017, 61 percent of moves to and from the state were outbound, according to data gathered in the company's 41st Annual Movers Study. There are various reasons why people left.

    • 46 percent of people left for job-related reasons
    • 18 percent of people left for lifestyle reasons
    • 19 percent of people left for family reasons
    • 5 percent of people left for health reasons
    • 29 percent of people left for retirement reasons

    The largest age population of those who left were those aged 55 to 64. Those 65 or older ranked a close second, with those aged 18 to 34 not far behind. The largest income group of those who moved out made an annual $150,000 or more.

    Several years of a mass exodus from New York have resulted a gradual population decline over the past few years. Last March, U.S. Census data found that 73,000 New Yorkers moved out of the state between July 2015 and July 2016. Some of the largest percentage declines measured at that time were in Chautauqua County, in western New York, Jefferson County in the North Country and Broome County in the Southern Tier.

    The decline in population resulted in New York losing two congressional seats after the 2010 census. In 2014, Florida surpassed New York as the third most populous states, after California and Texas.
     
  4. latemetal

    latemetal Platinum Bling Platinum Bling

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    Add in crappy gun laws and moving makes sense...[​IMG]New York compliant AR-15, my late brother owned one similar and I just about laughed myself sick looking at it...magazine limits too.
     
  5. Silver Art

    Silver Art Silver Art Bar collector Platinum Bling

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    Some of those CT (and NY and NJ) people are more than likely also moving to Tennessee where there is no income tax and property taxes are much lower than in NY and NJ. Tennessee is like Florida in the sense that, while there is no state income tax , there is a sales tax which can be as high as 9.75% depending on the TN county that you reside in.
     

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