“Someone who is spending 95 percent of their paycheck, that sales tax hurts them harder than someone who is spending 2 percent of their income each year,” he said.
Ken Schapiro, president of Condor Capital Wealth Management and a member of Tiger 21, an investment group whose members need to be worth tens of millions of dollars, said it would take more than higher taxes for him to leave New Jersey.
“It wouldn’t be higher taxes,” he said. “I have too many business ties. I own a tennis club here. I have friends and family here. Look, if they double the taxes I might do it.”
Still, Mr. Schapiro, an avid skier, said that he planned to work more from the home he has in Colorado, where the tax rate is half New Jersey’s, and that the increase might accelerate the decisions of some clients who prefer one of the states without an income tax, like Florida or Texas.
“The difference between 10.75 percent and 8.75 percent won’t necessarily pay for a second home, but the whole number will for sure,” he said, citing the new and old rates for millionaires in New Jersey. “But in general, I usually tell people to make decisions based on goals and objectives and worry about the taxes secondary.”
Leslie Quick III, one of the founders of the discount brokerage Quick Reilly, which Fleet Financial bought in 1997 for $1.6 billion, has lived in New Jersey since 1980. He has children and grandchildren in the state and said he would be hard pressed to get his wife to move to Florida for six months and a day to avoid the tax increase.
But Mr. Quick said he was bothered by how the state would spend the additional tax revenue. He said giving $500 rebates to families earning less than $150,000 was shortsighted when New Jersey had so many infrastructure needs and had to borrow $4.5 billion because of budget shortfalls related to the coronavirus.
Article source: https://www.nytimes.com/2020/10/02/your-money/wealthy-millionaires-tax-states.html
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