New Millionaires Tax?

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Seth Wenig

Sabastian Peake, Reporter

New Jersey has just decided that they were going to impose a “millionaire tax” which will raise state taxes 20% on people who make more than a million dollars. Critics have expressed concerns that this new tax will push away the wealthy and make them move to different states. While some people might move away to low-tax/no-tax states such as Pennsylvania and Florida, most have family and community ties holding them back. Small business owners/employees who are earning over $1 million will likely be staying in New Jersey. The ones that will leave most likely work in financial services. David Tepper, billionaire and founder of the hedge fund “Appaloosa Management”, moved from New Jersey to Florida back in 2016 due to the states debate on whether or not they would raise taxes on millionaires, however, he has moved back to Jersey. The state lost millions of dollars in tax revenue when he moved away. Due to the financial impact and hardship of the Coronavirus pandemic, and little to no prospect of increased federal aid, a raise in state taxes could be on the agenda of other states as well. Massachusetts have thought about it in the past. However, Governor Andrew M. Cuomo has shot down the proposal for New York State.