The Wealthy Are Leaving New Jersey in Droves: Here's Why
New Jersey has long been a popular destination for wealthy people, but in recent years, the state has seen a growing exodus of high-income residents. According to a study by the Pew Research Center, New Jersey lost more millionaires than any other state between 2010 and 2018.
There are a number of reasons why wealthy people are leaving New Jersey. One reason is high taxes. New Jersey has some of the highest property taxes in the country, and its income taxes are also relatively high. In addition, New Jersey has a number of other taxes, such as a sales tax and a gas tax, that can add up for high-income earners.
Another reason why wealthy people are leaving New Jersey is the cost of living. The cost of housing, food, and other goods and services is high in New Jersey, and this can make it difficult for high-income earners to maintain their lifestyle.
Finally, some wealthy people are leaving New Jersey because they are looking for a different lifestyle. New Jersey is a densely populated state, and some people find the pace of life to be too fast. Others are looking for a state with a more relaxed attitude and a lower cost of living.
Where are wealthy people moving to?
The Pew Research Center study found that the most popular destinations for wealthy people who left New Jersey were Florida, Pennsylvania, and Delaware. Florida is a popular destination for retirees, and it has no state income tax. Pennsylvania and Delaware also have lower taxes than New Jersey.
In addition to these states, wealthy people are also moving to other states, such as Texas, Arizona, and Colorado. These states offer a lower cost of living, a more relaxed lifestyle, and a warmer climate than New Jersey.
What is the impact of the wealthy leaving New Jersey?
The exodus of wealthy people from New Jersey is having a number of negative impacts on the state. One impact is a loss of tax revenue. When wealthy people leave, they take their income taxes with them. This can lead to a decrease in the state's ability to fund important services, such as education and healthcare.
Another impact is a decline in the state's economy. When wealthy people leave, they also take their businesses and jobs with them. This can lead to a decrease in economic activity and a loss of jobs for other residents.
Finally, the exodus of wealthy people is also having a negative impact on the state's quality of life. When wealthy people leave, they take their political clout with them. This can make it more difficult for the state to address important issues, such as transportation and infrastructure.
What can be done to stop the wealthy from leaving New Jersey?
There are a number of things that can be done to stop the wealthy from leaving New Jersey. One is to lower taxes. New Jersey has some of the highest taxes in the country, and this is a major factor in why wealthy people are leaving.
Another is to improve the state's economy. New Jersey needs to create more jobs and attract new businesses. This will help to keep wealthy people in the state and attract new ones.
Finally, New Jersey needs to improve its quality of life. This includes improving the state's infrastructure, such as its roads and bridges. It also includes improving the state's schools and healthcare system.
By taking these steps, New Jersey can stop the wealthy from leaving and start to attract new ones. This will help to improve the state's economy and quality of life for all residents.
Sources:
Pew Research Center: "The Wealthy Are Leaving New Jersey in Droves" (2019)
New Jersey Department of Labor and Workforce Development: "New Jersey Labor Market Report" (2022)
New Jersey Office of the Governor: "New Jersey's Economic Outlook" (2023)
