Report Explodes Myths about Taxing the Rich

“Millionaires Pay to Stay – The Millionaire Tax Migration Myth” is a blockbuster report issued by A Better Connecticut Institute. It is a truth-telling document that represents the interests of working class families in our state. It is a powerful breath of fresh air!

For decades Connecticut tax policy has been held hostage by the big lie that if billionaires are taxed their fair share they will flee our state and ruin our economy. Legislators and Governors, including Governor Lamont, have repeated this myth as proof that the rest of us should sacrifice basic needs and continue shouldering the billionaires' burden.

As a result, while most people in Connecticut pay about 25% of their income in taxes, the billionaires and multi-millionaires only pay 6% of their income in taxes, and everyone is left to compete for needed services.

That big lie is fostered by Yankee Institute, the right-wing corporate think tank that keeps their thumb on the scale, dominating legislators year after year and short-stopping popular measures to expand health care, housing, public education, child care, environmental protection, union rights and measures to overcome racial and economic inequality.

“Millionaires Pay to Stay” re-frames the debate with definitive data and a common sense message.

Thomas Cooke did the research. He is a well published specialist in causes and consequences of migration within the U.S.

Testifying before the legislature's Finance Committee in favor of HB 5673 which includes proposals to establish new income tax brackets and rates for incomes over $1 million, Cooke said that the myth about the wealthiest 1% leaving is based a a misuse of IRS migration data.

After detailed examination of the migration data, the effect of income taxes on migration of high earners, and reasons for moving to and from Connecticut, the report concludes “Research indicates that even moderately significant increases in the top marginal tax rates may only induce a few people with moderately-high incomes to leave and that the gain in tax revenue far outweighs the loss due to the migration of a few people.”

The progressive labor think tank A Better Connecticut Institute has done a great service to the well being of struggling families by exposing the big lie arguments used to maintain the status quo.

Seventy one percent of Connecticut residents support boosting income tax rates on those earning over a million dollars. There is no excuse!