In response to increased tax rates, high-income earners often threaten to leave the location of their tax base. But do they actually follow through? A new article in the American Journal of Sociology, “Taxing the Rich: How Incentives and Embeddedness Shape Millionaire Tax Flight,” examines how increased tax rates incentivize top earners to relocate, and how the forces of embeddedness within their communities encourage them to stay.
Do increased taxes incentivize the rich to move?
