"The specific type of tax matters. The key is to design it around something the rich don't want to give up—such as their home in the most economically and culturally important city in the world—not something they can easily avoid by simply changing their tax residence."
"For a long time, academic research said that the rich don't move because of taxes. Studies of millionaire migration found that high-income households had lower migration rates than the middle class."
"Digital technology, and especially the successful experiment in remote work during the pandemic, severed the bond between where a business is and where the owner lives. Once that bond broke, everything changed."
New York City's proposed pied-à-terre tax targets second homes valued over $5 million. Wealthy individuals, like a billionaire who moved to Miami, often retain ties to their original cities. Research indicates that high-income households typically do not migrate due to taxes, as they are deeply embedded in their communities. However, the rise of remote work has altered this dynamic, allowing wealthy individuals more flexibility in their residence choices, potentially impacting tax revenue strategies for cities.
Read at The Atlantic
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