New Jersey’s wealthiest billionaire, David Tepper, a Wall Street financier and hedge-fund manager estimated to be worth about $10.6 billion, quietly moved his official residence and business, Appaloosa Management, to Miami at the end of last year, according to Bloomberg News. The move will reportedly save him hundreds of millions on taxes, particularly as a federal loophole regarding offshore money expires in 2017 and will cost him state taxes in New Jersey but not in Florida.
The report caused many to point to the continual worry that an increase in the top New Jersey income tax rate will cause the wealthy to flee, thus being counterproductive to raising more revenue for state coffers.
Yet liberal-leaning think tank New Jersey Policy Perspective continues to reject that idea. According to NJPP, there are 53,212 households in New Jersey with incomes of more than $500,000, which equates to 1.9 percent of state tax filers. They also claim there are 25,000 millionaire households in the state — defined as those with investable assets of $1 million or more.
NJPP says that in 2003 there were 28,178 New Jersey households (or 1.1 percent) with incomes of $500,000 or more and that in 2013 there were 52,212 (1.9 percent). This growth came despite two tax hikes, one temporary and one permanent, on the wealthiest New Jerseyans.