Thursday, June 9, 2011

Let FLG Get This Straight

Matt Yglesias thinks Connecticut would be better off if it raised taxes and rich people from Fairfield County moved to Florida? "It's win-win," he says.

Uh, yeah. Put FLG in that's a bunch of bullshit camp. Yeah, sure, you can come up with a story that makes it sound like it would be better, but anybody with half a fucking brain who thinks for half a fucking second will come to the conclusion that just as a country is better off with more rich people, so is a state.

A reasonable response to the idea that raising taxes in Connecticut is going to drive out rich people is -- will it really? The majority of people with high incomes in Connecticut are tied to New York City. They either work in Manhattan or, if they're a hedge fund guy in Greenwich, greatly benefit from access to Manhattan. So, a majority of the rich people in Fairfield County only have three options: Connecticut, New York, or New Jersey. As long as CT is still the relatively low tax state, then the adverse consequences of a tax raise on the wealthy won't be terrible. Sure, some people will move to Florida (or declare residency in Florida), but it won't be some mass exodus. But the idea that Connecticut would be better off with fewer rich residents is dumb.

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