New Jersey has long been notorious for the difficulty of doing business in the state combined with the high tax rates on income, estates, and property. Attempts to fix those issues has been in the works for years but little common ground between Republican Gov. Chris Christie and the Democratic legislature has been found to form the basis of a solution. However, the recent move of the wealthiest individual in the state, hedge fund manager David Tepper, to tax friendly Florida has upped the issue to crisis level in the minds of many. Some worry that his departure could cost the state tens of millions of dollars, due in part to the fact that Tepper moved his entire operation out of state, and be the harbinger of other wealthy residents fleeing the state. The estate tax rate has been particularly contested as opponents worry the low exemption and high rate will drive people from the state while supporters do not want to lose the income especially since it comes from a group that is popular to tax. Whatever the solution eventually reached, New Jersey is just one state among many faced with tough questions about internal tax policy and the loss of high net-worth residents.
See Michael Catalini, Billionaire’s move puts New Jersey tax rates in spotlight, Philly.com, April 10, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
