Scott Coffey did the math.
Here is his comment:
Millionaires are actually looking at a 60.6% tax increase.
They will be moving from a flat rate of 4.95% of their taxable income to a flat rate of 7.95% of their taxable income.
I am wondering what JB used for the “Millionaire Loss-Rate” assumption in determining State revenues for millionaires that decide to move out of state rather than pay 60.6% more in income taxes.
This instantaneous 60.6% tax increase would seem to violate the “Boiling Frog” metaphor which holds that a frog put into boiling water will immediately jump out, but if the frog is put into warm water that is slowly brought to a boil, it will continue to stay until its death.
With the State’s financial difficulties, I guess JB can’t wait to bring this up to boil slowly.
Millionaires have just been put on notice that they have about a 2 year lead time get their affairs in order before this all passes.
One might wonder how many stick around.