If You Don't Like Rich People, Just Tax Them Out Of Your State

There may be a battle forming in the New Jersey GOP primary for Governor. According to this WSJ editorial, Steve Lonegan is proposing a flat tax in lieu of the existing graduated income tax. New Jersey has one of the highest tax burdens in the country. Lonegan's plan would at the least make it one of the least burdened states in the northeast which is important to note considering the ease with which residents can move. The editorial says that New Jersey has suffered the nations 4th highest rate of out-migration of all the states. Lonegan doesn't want residents who are expected to fund many of the tax revenues to move out of the state's tax reach which is the main idea behind a low (2.98%) rate on each taxpayer's first dollar of income.

It will be interesting to watch how the current frontrunner Chris Christie will continue to attack the flat tax as a tax on the poor without being perceived as Republican engaged in the typical Democratic strategy of class warfare.