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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think that she doesn’t understand basic economics. Raising taxes doesn’t work - it just causes wealthy people to move to a lower tax state. See California population outflows…[/quote]

False 
https://www.forbes.com/sites/teresaghilarducci/2025/12/29/do-wealth-taxes-really-make-billionaires-leave/

“Cristobal Young and Charles Varner’s work using New Jersey and California tax data finds near-zero long-run migration elasticities among millionaires. Even after sizable tax increases, the number who leave is small, and the revenue gained from those who stay exceeds the revenue lost from movers.”

[/quote]

VA raising taxes could cause folks to move to DC or Maryland (if that’s where they’d rather be), as [b]VA would no longer be the low-tax option in the DMV[/b].[/quote]

Why? You’re going to have to show the math on that one.

Traffic sucks. Most people choose their location based on their work location, not minor variations in tax rates. 
[/quote]

The current maximum state + local income tax rates in the DMV are as follows:

Virginia: 5.75%
Maryland (6.5%) + Bethesda (3.2%): 9.7%
DC: 10.75%

For persons with $1M of taxable income, they pay $57,500 if they live in Virginia, $97,000 in Maryland, or $107,500 in DC.  We absolutely chose to live in Virginia over DC to save the $50k in taxes (as well as to have access to in-state tuition for our kids to VA universities).  If Virginia raises taxes to over 10%, we'd just move to DC and be part of the gentrification of DC.
 
[/quote]

How much do you make? How much of it is [u]over $1m[/u]?

We make ~$2.5M HHI.

Using very simple math/accounting: 
5.75% => $144k VA tax

If the legislation passes (it's not even out of committee yet BTW): 
5.75% + 10% for over $1M => $208k VA tax

Are we going to move over $64k? No. That's less than 3% of our income and a fraction of what we'd pay for realtor fees to sell our house.

In reality, it'd be less than that with various deductions. And if we were going to move, it'd probably be somewhere with even more taxes.

Republican histrionics aren't based in reality. 
 [/quote]

You do you.  I wasn't hypothesizing that someone would move out of Virginia to save taxes.  I was hypothesizing that there are plenty of people that WORK in DC, but chose to live in VA for various reasons, one of which might have been lower taxes.  I know I made this choice and the tax savings was material enough that I was willing to commute into DC.  If VA eliminates the tax savings, those people may chose to move to DC to be closer to work.  As someone else noted, commuting sucks.

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I was responding to the person who wrote [i]"If Virginia raises taxes to over 10%, [u]we'd just move to DC[/u] and be part of the gentrification of DC." [/i]
[/quote]

I am that person.  For some reason you are missing the point.  I work in DC.  I would prefer to live in DC but choose to live in VA because the taxes are so much lower.  [b]If Virginia takes away the lower taxes, I will just move to DC. [/b] I am imagining that there are others in the same position based on anecdotal conversations with co-workers about WHY they chose to live in DC v. Maryland v. Virginia.

[/quote]

So....you would move out of VA to save taxes? 
[/quote]

You are dense.  I moved TO Virginia to save taxes.  If Virginia has the same tax cost as DC, moving from VA to DC would not “save” any tax.  I would be moving closer to my job.  There are a bunch of people that work in DC but live in VA for the better tax result.  That is the draw.

[/quote]
How much of a difference is it? Like, give us a number because whenever I’ve done the calculations, they’re pretty much the same. Yeah, property taxes are lower, but car taxes transportation grocery taxes are all higher. I can’t imagine moving for taxes unless you don’t have kids.[/quote]

I did the rough math for $2.5M income.

It’d be a $64k increase for VA, but it’d still be $80k less than DC. Most people in that income bracket aren’t moving for that.

There is no increase for HHI < $1M.

[/quote]

This is a far cry from the billionaires that were mentioned in the original article,[/quote]

The article discusses millionaires and billionaires.

"Cristobal Young and Charles Varner’s work using New Jersey and California tax data finds [b]near-zero long-run migration elasticities among millionaires[/b]. Even after sizable tax increases, the number who leave is small, and the revenue gained from those who stay exceeds the revenue lost from movers.

[/quote]

The original wealth tax was meant to target the billionaires but, of course, there's not enough money in the billionaire class. No millionaires don't have the same mobility as billionaires. As with any of these tax ideas, when the legislation is finished, the billionaire class has protected itself. [/quote]

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