A recent article over at Barrons.com describes the mass migration of the wealthy. A migration so great, that many experts believe it to be one of the most significant in U.S. history.
Why are they leaving? In the name of saved money. These wealthy migrations are the direct results of tax increases on both a state and federal level. 2010 fiscal year projections for states such as New York, New Jersey and California look anything but promising. This of course has lead to an increase in income, gas, sales and estate taxes.
Most of the income-tax increases apply directly to the wealthy. “Millionaire taxes” as they are called, are geared towards those making $250,000 or more annually.
This has Been Going on for More Than 10 Years?
According to the Barrons.com article, the migration of the wealthy has been trending since 1997. It’s reported that 1,100 people move out of high taxing states on a daily basis.
Staggering numbers for sure, but where are they going?
Where the Money is Moving
These wealthy movers are heading straight for lower taxes. States such as Washington, Tennessee, New Hampshire, South Dakota, Wyoming and Alaska are the destinations for the wealthy movers. All of these states refrain from taxing personal income.
What These Moves Mean for the Abandoned States
The worst part about this move is the implications of the abandoned states. As the wealthy move, they take jobs with them. It’s logical if you think about it. A low-tax burden state will attract business owners, which in turn creates jobs. As the wealthy business owners leave town, they are taking their businesses with them creating a loss of jobs.
How it Affects Marketers
This article doesn’t surprise me one bit. We are seeing the same scenarios play out not only here in Atlanta, but in North Carolina and South Carolina.
A current client of mine sees over 7,500 hits a month from the New York and New Jersey area. For our Atlanta based developments, California is now the second highest rated state for web inquiries. This is great for our states, but what does it mean for marketers?
It makes web marketing that much more important, especially in luxury development. Engaging the wealthy movers with information that calms their concerns about the cost of living is the best way to entice them. Through social networking and e-media, it makes since to inform our audiences of the cost of living.
In the past it might look a little obscure to add property taxes as a benefit to your website, but now it makes sense. If you really understand what your target market is looking for, then it should be a no brainier.