Most Americans are celebrating lower taxes … but not necessarily wealthy taxpayers living in high-tax states.
New York, New Jersey, Illinois and California are among those states seeing a mass exodus.
Because of the limitation of only a $10,000 federal tax deduction for state and local income taxes plus property taxes.
Wealthy individuals with million dollar incomes and above … living in large homes or estates with high property taxes … aren’t going to like paying much higher federal taxes because they can’t deduct all of their state income taxes and property taxes on their federal tax returns like they could before the tax reform.
Instead, they’re moving to low-tax or zero-tax states.
The exodus has already begun…
Art Laffer, former President Ronald Reagan’s economic advisor, talks about one billionaire taxpayer who left New Jersey for Florida … and threw the New Jersey state budget into chaos.
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