Most people living in New Jersey already realize that the state has an extremely high cost of living, which can lead to the quick accumulation of debt and create serious financial difficulties. With tax time upon us, you might also be aware that the State of New Jersey has some of the highest income taxes in the entire country. In fact, NJ ranks fifth among all states when it comes to income tax rates. Perhaps not coincidentally, the Garden State also has the highest percentage of residents who are leaving, according to United Van Lines, a moving company that has compiled data on state-to-state moves.
With so many people so electing to move away from New Jersey due to the high tax rates, the question becomes: Where are they all going? Well, the destination for a lot of people looking for lower tax rates these days is Florida, a state that has no income tax. Moving statistics show that Florida had the highest percentage of new residents in 2015.
Departing Residents Creating Tax Problems for New Jersey
The exodus of some high net worth individuals, and their businesses, from New Jersey is creating budgetary concerns for state officials. For example, David Tepper, the founder of hedge fund Appaloosa Management, recently decided to take his firm from New Jersey to Miami Beach, Florida. The move could cost New Jersey hundreds of millions of dollars in tax revenues.
These sorts of moves are even more likely to occur in the future as the federal government cracks down on tax dodges by corporations and people who work in the financial industry. The reality is that anyone with a high enough income could potentially benefit from a move to a tax haven – at least as far as lowering their annual income taxes.
For additional information, view the Yahoo.com article, “Here’s Another Tax Dodge for Billionaires.”
If you are dealing with debt-related issues or tax issues, you may be in need of debt management assistance. Joel R. Spivack is an experienced bankruptcy and debt relief attorney who can help you if you are looking to rebuild your credit. Contact Mr. Spivack today to schedule a free consultation and explore your options.
