Sovereign: Study Shows New Jersey Wealthy Voting with their Feet…

Bob Bauman (February 15, 2010)

The richest citizens of the American State of New Jersey, who in the past generated most of the tax revenue, have been fleeing the state, a new university study shows. As reported in The Star-Ledger (Newark), the total aggregate personal net worth of New Jersey’s residents fell by $70 billion between 2004 and 2008 – a sharp reversal of a net $98 billion inflow that had occurred during the previous five years.

Guess why?

New Jersey has some of the highest real estate and income taxes in the nation and its death tax is imposed on estates in excess of $675,000. These rich folks know that many other States don’t tax income or estates at all, and property valuations and tax rates are much less, (just like many offshore tax havens).

It’s not a full-scale global migration yet, but it is becoming a trend the world over…

Many insurers and re-insurers are leaving their sunny southern Atlantic and Caribbean island homes and heading for Europe, often “re-domesticating,” as the phrase goes, in Ireland – which has one of the lowest corporate tax rates in the EU.

XL Group announced that it was leaving the Cayman Islands and setting sail for the Emerald Isle. Last September, the world’s third largest insurance broker, Willis Group Holdings, announced that it was moving from Bermuda to Ireland. Ace Limited, which was the biggest Bermuda-based insurer and reinsurer, jumped ship in 2008 and headed for Switzerland. CEO Evan Greenberg was crystal clear about the reason: Switzerland offered more stability and a “network of tax treaties.”

Meanwhile, Business Week warns that, “Anti-tax legislation in Washington could limit the ability of U.S. companies located in Bermuda to shelter overseas profits.” Obama’s trillion-dollar deficit budget released on Jan. 31 denies U.S.-based insurance companies a major deduction for certain premiums ceded to their offshore parents.

The news stories I’ve cited above demonstrate how thinking people can stay abreast of many threats, how they and you can react with legal relocation of wealth, assets, investments – even by moving your business, yourself and your family.

Look around you. What threats do you see? The chances are excellent that we can advise you on what to do – and how it can be accomplished quickly. Act now.

Bob Bauman, Author of The Passport Book