The Wall Street Journal recently published an editorial suggesting that a state income tax increase caused up to 10,000 wealthy taxpayers to flee the state of Oregon. A new report from ITEP, however, explains why this assertion is totally unsupported by data from the Oregon Legislative Revenue Office (LRO).
Specifically, the Journal claims that because 10,000 fewer taxpayers were affected by a recent state income tax increase than the LRO originally anticipated, it must be the case that most of those 10,000 taxpayers packed their bags and moved to Texas. But as ITEP's report explains, the decline wasn't due to migration; instead, Oregonians simply earned less than the LRO thought they would (because of the recession), and as a result fewer taxpayers were affected by the new tax rates on income over $250,000 (or $125,000 for single filers).
ITEP also criticizes the Journal for continuing to spread the myth that "one-third" of Maryland's millionaires "vanished from the tax rolls after rates went up" on millionaires in 2008. ITEP has noted the fallacy of this claim on two separate occassions, and even the Journal itself has conceded as much in the past (see page 2 of ITEP's report).