A recent study released by an economist from the University of Massachusetts found that one of the scare tactics used by both federal and state lawmakers for not raising taxes and instead cutting back funding of public works and social services is based on a false impression.

A review of recent research performed by economist Jeffrey Thompson found that there is no evidence to support the often-employed claim that the wealthy will flee states that raise taxes to pay for public services. The study actually found that the most wealthy tax payers were less effected by tax increases in general and were therefore even less likely to consider moving out of state due to increases in their taxes.

Research on the subject found that that family and community ties and the difficult prospect of moving entire families out of state assuages both high wage earners and lower wage earners from considering a move simply due to a state imposed tax increase. Thompson said that the ability of the wealthy to “absorb such increases is obviously strongest,” and therefore such households ”are less likely to cut back on spending as a result of tax hikes.”

In fact, many wealthy wage earners told researchers that they felt obliged to pay more for programs and services that make the community a better place.

its all true:
Raising revenue from high-income households : Should states continue to place the lowest tax rates on those with the highest incomes? – Jeffrey Thompson, Political Economy Research Institute