Recapping the day's news and newsmakers through the lens of CNBC.
For many, it's gospel: High tax rates drive the wealthy away. And from time to time we get news of one celebrity or another decamping a high-tax state for a cheaper one. But the high-tax areas are also creating and attracting wealthy folk, so what's the bottom line?
A new study by UBS and Wealth-X shows that some of the highest-tax states create the most multimillionaires. California, with the highest state tax rate, 13.3 percent for those making $1 million or more a year, was the biggest creator of multimillionaires. Massachusetts had the highest percentage growth, at 35.2 percent. New York City, with a combined city and state rate over 12 percent, added more multimillionaires than any other city.
"Broader economic factors seem to matter as much or morethan taxes for millionaire counts—like economic growth, business environment, the role of finance in the economy and the type of local industry."
—CNBC's Robert Frank