A new study by big Switzerland-based bank UBS and Wealth-X debunks theories that the superrich are leaving the high-tax states.
Over the past year, California was the biggest gainer of people worth $30 million or more. The state has the highest tax rate — 13.3 percent for those making $1 million or more.
New York City, which has a combined city and state tax of more than 12 percent, was in first place among metro areas for adding those with net worth of $30 million or more.
Of course, California is the biggest state and New York the biggest metro area. And California has Silicon Valley and New York has Wall Street. Still, on a population-adjusted basis, Massachusetts — contemptuously called Taxachusetts — had the biggest gain, despite a relatively high income-tax rate.
This is not to say that low-tax states and cities don't gain multimillionaires. Of the top ten gainers, Texas and Florida, with no income taxes, are second and third, respectively.
The study concludes that all things considered, a state's tax rate doesn't correlate to net gain or loss of multimillionaires. According to a CNBC account of the study, this conclusion conflicts sharply with opinions offered by writers such as Travis Brown, author of How Money Walks, who claims the fat cats are leaving the high-tax states rapidly.