The "millionaires fleeing high-tax states" narrative is cope.
California and New York—states with the most progressive tax systems—still have the highest concentration of millionaires in the US. And those populations have GROWN since 2010.
When California jacked its top rate to 13.3% in 2012, doomers said the rich would bolt.
Result? 138 people left. That's 0.04% of the 312,000 hit by the tax.
Stanford study confirms: "Taxes aren't really high enough for them to be sensitive."
TLDR: Rich people optimize for access, network effects, and deal flow—not state tax rates. The alpha is where the liquidity is, not where your CPA tells you to move.
California and New York—states with the most progressive tax systems—still have the highest concentration of millionaires in the US. And those populations have GROWN since 2010.
When California jacked its top rate to 13.3% in 2012, doomers said the rich would bolt.
Result? 138 people left. That's 0.04% of the 312,000 hit by the tax.
Stanford study confirms: "Taxes aren't really high enough for them to be sensitive."
TLDR: Rich people optimize for access, network effects, and deal flow—not state tax rates. The alpha is where the liquidity is, not where your CPA tells you to move.