For purposes to today’s column, let’s look at how our friends on the left react to tax-motivated migration.
In late 2024, I wrote about the Socialist Party of Norway, which has a “wall of shame” showing all the rich people who have escaped.
I don’t think that approach has been very effective. So let’s consider two other responses.
Mayor Wilson of Seattle has a different response. Instead of “shame on you,” her message to runaway taxpayers is “good riddance.”
Here are some excerpts from an editorial published by the Washington Post.
The 43-year-old Wilson, who received a $10,000 allowance from her parents last year, is defiant about the consequences of her antagonism toward successful people who create value for society. Speaking recently at a Seattle University event, the mayor brushed off claims that taxpayers respond poorly to higher taxes. “I think the claims that millionaires are going to leave our state are, like, super overblown,” Wilson said. “And if — the ones that leave, like, bye.” Her arrogance is increasingly typical of the state’s political elites. In March, Gov. Bob Ferguson (D) signed into law a millionaire’s tax that will add an additional 9.9 percent rate on incomes over $1 million. With the tax on the horizon, former Starbucks CEO Howard Schultz announced that he and his wife are fleeing Seattle for Miami. Florida has no state income tax. …Socialism has failed everywhere, but it’s flaws are exposed much faster in free countries like the United States, where individuals and businesses can simply leave for more welcoming jurisdictions.
Mayor Wilson’s dismissive attitude seems misguided.
If you’re a flea or a tick, you don’t want all the dogs to leave town.
The governor of New York seems to understand that parasites need victims. Matt Weidinger of the American Enterprise Institute wrote that she is trying the “please come back” strategy.
New York Governor Kathy Hochul made news recently with an interview that was at once revealing and pathetic. The revealing part was her plea for rich former New Yorkers to return so they can be taxed to support expansive state welfare programs. The pathetic part was that she seemed to believe some might. …Hochul said “I need people who are high net worth to support the generous social programs that we want to have in our state.” Many have decamped for red states like Florida and Texas. The governor half-jokingly suggested someone “go down to Palm Beach and see who you can bring back home.” …Governor Hochul’s comments reflect a rare admission that surtaxes on the rich carry significant tradeoffs. Not the least of which is that targeted taxpayers sometimes leave, taking revenue blue state lawmakers assume will finance expansive welfare and other benefits with them. Go figure.
Governor Hochul’s approach is not antagonistic, insulting, or dismissive, so that puts her ahead of Norway’s Socialist Party and Seattle’s lefty mayor.
That’s the good news.
The bad new is that her approach also won’t be effective. When taxpayers are being victimized, they do a calculation about the benefits of living in a jurisdiction and they do a comparison to the costs of living in a jurisdiction.
In some cases, people will have good reasons to want to stay in high-tax jurisdictions (California’s climate, for instance).
If Norway’s socialists, Mayor Wilson, and Governor Hochul were smart, they would stop pillaging entrepreneurs, investors, and business owners, but I won’t hold my breath. The modern left is largely motivated by envy.