Annie Martínez reflects on the Litigation and Advocacy Leaders Conference they attended with support from our CCLP Rights Defenders donors.
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Guest Column: Tax Flight, The Harmful Persistence of an Unfounded Idea

CCLP volunteer Elzer McReynolds argues why tax flight is a harmful idea to states trying to enact higher taxes on the top 1% of earners.
The concept of ‘tax flight’ is one that has been referenced time and time again in politics, but it is an idea that has persisted despite, rather than because of, the research of experts in the field. Various scholarly papers have declared the issue marginal at best with data suggesting around “a drop of 0.2% of the state’s millionaire population,” in response to increased income taxes for high earners.[1] If the research done into this idea consistently proves its effects are virtually irrelevant, why is it still used to argue against every tax policy targeting the richest 1%?
What exactly is tax flight? It is the theory that if income taxes for millionaires and billionaires are raised to a certain level, large numbers of those top earners will leave for states with lower taxes. The idea makes logical sense: millionaires don’t want to lose money by giving it to the state, so they move. However, reality has proven ‘tax flight’ to be a myth: millionaires have one of the lowest movement rates of any demographic, and they are extremely unwilling to uproot their companies and families for the sake of taxes alone. In addition, many millionaires support increased income taxes so they can support their communities. A few do move when income taxes rise: but that is a tiny percentage. In the end, revenue brought in from millionaire taxes far exceeds anything lost due to millionaires moving away[2]. Tax flight as a concept can only sound meaningful when it is exaggerated, and it should not be the sole reason millionaire taxes don’t pass in states that need the funding.
As written by a 2026 article in The Guardian, “The arguments [of tax flight] are not so powerful, but powerful people like them.”[3] Many politicians or community members with the sway to stand against tax changes are those who would be targeted by millionaire taxes. They have the power and the funds to campaign against ballot initiatives that would raise the income taxes they owe their state.
Earlier this year the state of Washington passed an increase to income taxes on the residents of their state making over one million dollars a year. The top rate of 9.9% will come into effect for fiscal year 2028. This change to the state’s tax code had been attempted before, but some of Washington’s wealthiest raised money in the business community to lobby against the tax. In 2026, it went largely unchallenged by the business community, allowing the initiative to finally succeed.[4] There were multiple circumstances that were different in the past versus in 2026, when this tax finally succeeded: some of those circumstances contributed to the business community’s support for the initiative. Without the backlash and predictions of supposed ‘tax flight,’ the change to the tax code was finally successful. The whims of the residents with the most wealth to spend on lobbying should not have been the deciding factor in whether the tax passed or not, and yet it was.
An income tax increase passed successfully in Massachusetts in 2022, providing an example of what an initiative that raised concerns of tax flight actually resulted in. Since going into effect, the Fair Share amendment[5] has raised billions of dollars for state schools, public transit, childcare, and more. These dollars have all come from millionaires and billionaires in Massachusetts, a number that has increased by over 30% since the tax passed.[6] The revenue from the tax improved the standard of living in the state, making it a more enticing place to move to for people of all income levels, including millionaires. More residents of Massachusetts have become millionaires simply because the state’s economy has improved, adding to the number contributing revenue thanks to the tax. As for the theories of tax flight, the change in the tax code only lost the state roughly 0.4% of the revenue the tax ended up bringing in.[7] Relative to the billions of dollars the state has been able to spend on its communities, the effects of ‘tax flight’ are negligible.
Tax flight is supported not by data, but by a small number of self-serving politicians and campaign donors with enough money to convince others of the largely unfounded idea. And although tax flight is an idea that should not have persisted due to the lack of data behind it, it still has very harmful effects on communities. Many public schools have to cut teacher and staff positions every year because the state can’t support them enough. Recent federal cuts to programs like Medicaid and SNAP have left states cutting both services and payments to medical providers. By understanding how proposed tax changes actually work and affect people of all income levels, voters can make informed decisions that are based off of more than a myth.
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[1] The Myth of Millionaire Tax Flight: What Data Shows – LegalClarity
[2] Tax flight is a myth – MECEP
[3] Washington state’s ‘historic’ millionaire tax takes aim at super-rich – will it succeed? | Washington state | The Guardian
[5] Home | Fair Share Amendment
[6] Do Millionaire Surtaxes Lead to Millionaire Exodus? — People’s Policy Project
[7] Why We Should Stop Worrying About Wealth Flight – Economic Opportunity Institute



