Taxes

Taxing Wealthy Dynasties Seen Backfiring in States Like New York

Billionaires are more motivated to move out of places with estate taxes as they get older, a new study finds.

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Taxing the dynastic wealth of billionaire families can sometimes backfire, particularly in states like New York that already have high income-tax rates.

Estate taxes prompt many super-rich residents to move to states without the levies, especially as they get older, according to a new study from economists Enrico Moretti and Daniel Wilson. However, because most billionaires stick around, the majority of states can impose an estate tax and still bring in more revenue than they lose.