Friday, May 28, 2004

This State Is Hostile to Rich People

If you want to be wealthy and enjoy the fruit of your labor, don't live in Rhode Island. According to Bloomberg Wealth Manager magazine, a monthly publication for financial planners and investment advisers, the country's smallest state is also the country's most wealth-hostile state. Why? Rhode Island will nickel-and-dime your money right out of your bank account in high taxes aimed especially at the rich. Other states that are noted for being "wealth-hostile" are Wisconsin, New York, Vermont, and Nebraska.

Where do you want to live if you're rich? Wyoming. It has been named the wealth-friendliest state when it comes to keeping the rich rich. According to the editors of Bloomberg Wealth Manager magazine, Wyoming kept "the wealth in the hands of the breadwinners, not the state government." And that's not likely to change soon. Wyoming actually has projected a state budget surplus of $1 billion over the next two years. Other states that earned high marks for "wealth-friendliness": Nevada, Tennessee, Alabama, and Alaska.

Wealth-friendliness was determined based on the impact of state taxes on salary, real estate, personal property, and retirement assets for four hypothetical families. In addition, the editors ran exhaustive research on tax codes and effects in each state. The results vividly demonstrate how tax bite can vary from state to state--and how each state's burden can change depending on the nature of one's assets. "For example, the identical set of financial parameters that generated a tax bill of $7,259 last year in tax-friendly Wyoming could have cost a family $56,419 in tax-hell Rhode Island," write the editors.

Thanks to wmconnect news

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