Seminar to Look at Impact
of Taxes on Wealthy Elderly
Contact: Lori Wright
UNH Media Relations
February 24, 2004
DURHAM, N.H. -- The impact of progressive state taxes on wealthy
elderly residents is the focus of the next Economic Lecture sponsored
by the University of New Hampshire's Whittemore School of Business
“Evidence on the Impact of Progressive State Taxes on the
Locations and Estates of the Rich,” will be presented Friday,
Feb. 27, 2004, at 2:10 p.m. in McConnell Hall, Room 318. The presenter
is Jon Bakija, assistant professor of economics at Williams College.
The paper is the first to provide evidence on the effects of state
taxes on the location decisions of the very wealthy. Bakija will
present new evidence on the responsiveness to state tax policy and
bequests of the wealthy. He and co-author Joel Slemrod have found
that increases in state estate and inheritance (EI) tax burdens
have an economically and statistically significant negative effect
on both the number of federal estate tax return filers claiming
to be residents of that state, and the aggregate value of such estates.
According to Bakija and Slemrod, whether wealthy elderly people
flee states that impose relatively high tax burdens on them is an
important question for state governments. In addition to states'
usual concerns that the elderly may be an especially elastic tax
base, states now must decide how to respond to the phase-out of
a federal credit for state EI tax payments.