In order to pay for increased services, states and municipalities often propose higher taxes — particularly on the wealthier among us. They argue that the wealthy are more able to afford it and are less harmed by the increases. But what happens when the wealthy get tired of their taxes going up? The answer, according to IRS data, is they leave.
An analysis noted in this story from Forbes shows that the wealthier are apparently attracted to areas with lower tax burdens, which often happen to be in the South. Go figure. Here is an interactive map showing the migration patterns.
In sum, the unintended consequence of “soaking the rich” is that you may eventually run out of rich people to soak.