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Here’s another tax dodge for billionaires

Can you move 1,200 miles just to lower your taxes? Well, David Tepper can, and it may save him hundreds of millions of dollars.

Tepper is the founder of hedge fund Appaloosa Management, and he’s worth more than $10 billion, according to Forbes. He ran his firm out of New Jersey for years, but recently moved the operation to Miami Beach. The top income tax rate in New Jersey is nearly 9%. In Florida, the top rate is 0. Tepper will save so much money that New Jersey finance officials worry that the tax revenue lost to his move could blow a hole in the state budget.

Connecticut lost a couple of billionaires as well—businessmen Thomas Peterffy and C. Dean Metropoulos, who also decamped for Florida recently. Their departure lowered Connecticut’s billionaire count from 15 to 13. The Nutmeg State is also losing longtime corporate citizen General Electric (GE) to Boston, a move GE made after Connecticut passed big tax hikes. Florida Gov. Rick Scott even invited Yale University to ditch New Haven and relocate to the Sunshine State, to avoid a new tax some Connecticut lawmakers wanted to impose on the school’s endowment. That bill failed to pass, and Yale says it is staying put (for now).

Tax dodges available to the wealthy – but usually, not to the rest of us – have become a sore spot among Americans growing weary of crony capitalism. Democratic presidential candidate Bernie Sanders draws roars of approval when he calls for a sharp tax hike on the wealthy. Republican Donald Trump vows to end certain tax breaks that, he says, allow hedge-fund managers to “get away with murder.” The Obama administration recently cracked down on corporations that try to avoid paying...


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