Can Raising a Tax Lose Money?

Source: Hawaii Reporter
by Tom Yamachika

“One fundamental assumption that has been made over the years by our lawmakers is that if you enact a tax, money will be raised. What if that weren’t true? In late 2019, a pair of economists, Enrico Moretti and Daniel Wilson, published a paper titled ‘Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy.’ In that paper, they followed the movement of 400 of the nation’s richest people (the ‘Forbes 400’) and came up with a mathematical model to predict the chances that a particular rich person would move out of state in response to either an enactment of or a hike in that state’s estate tax.” (08/30/21)