Hedge fund manager Dave Tepper, who is rumored to have a net worth of more than $10 billion, has sparked some concern in New Jersey by his relocation to Florida. Many question if the reason for his relocation was the high tax rates of New Jersey compared to the low tax rates of Florida.
New Jersey has the lowest state estate tax exemption in the nation at only $675,000. It has the highest property tax rates in the U.S. It has a top income tax rate of 8.97%. Additionally, New Jersey is one of only two states in the country to have not only an estate tax but also an inheritance tax.
Florida, on the other hand, has neither an estate tax nor an income tax.
The Inquirer reported this story in "Billionaire's move puts New Jersey tax rates in spotlight."
While Tepper's move has many state lawmakers concerned about the state's high taxes and the loss of revenue from wealthy citizens moving to states with lower tax burdens, it is not certain that any changes to the state's taxes will be forthcoming. To date, the Republican governor and Democratic controlled legislature have been unable to reach agreements about changing the state's tax code.
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Reference: The Inquirer (April 10, 2016) "Billionaire's move puts New Jersey tax rates in spotlight."