Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy

Enrico Moretti and Daniel Wilson

American Economic Journal: Economic Policy, 2023, vol. 15, issue 2, 424-66

Abstract: We contribute to the literature on the effect of taxes on the locational choices of wealthy individuals by examining the geographical sensitivity of the Forbes 400 richest Americans to state estate taxes. Though we find billionaires' effective tax rates are only about half the statutory rate, their residential choices are highly sensitive to these taxes, as 35 percent of local billionaires leave states with an estate tax. This tax-induced mobility causes a large reduction in the aggregate tax base. Nonetheless, we find that the revenue benefit of an estate tax exceeds the cost for the vast majority of states.

JEL-codes: H24 H31 H71 R23 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy (2019)
Working Paper: Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy (2019)
Working Paper: Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy (2019)
Working Paper: Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy (2019)
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DOI: 10.1257/pol.20200685

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