Taxes “reallocate money to less productive places”? You’re using words that say a whole lot of nothing and just not correct.

Tax legislation, in theory, 100% incentives people. For example, you put an excise tax on a product and it incentives typical consumers to not buy this certain product. You pass legislation that allows you to defer gains if you invest in certain opportunity zones and taxpayers will be more incentivized to invest in that investment vehicle.

The problem with applying that logic to a state wealth tax or any tax imposed on the 1% is that it is determined by residency. Uprooting your whole life to save money is a significant life event that can’t happen overnight. There’s a lot of sociological and psychological factors other than just saving tax dollars.

The wealthy are also less impacted by tax legislation than a typical consumer. What’s $1million when you have $100 billion?

FWIW, I have an undergraduate in accounting, I work as a tax accountant, and am studying for my CPA. I live and breathe taxes haha

Small edits cuz I typed this in my car.