[Spooky23]

If your basic economic principle argument held much water, every investment banker would have moved to a lower tax locale decades ago.

The reality is that people weigh these costs against many factors and locales, clusters of business, family and institutions have powerful effects that add friction.

From a practical standpoint, the investment banker pulling in a $500k bonus in NYC with its 11.5% marginal tax rate doesn't move to New Hampshire because he'd take a 50% or more compensation haircut.