[makestuff]

How do you deal with a corporation just moving their HQ to another state though? It is hard because you cannot just say oh we should only have a federal income tax because then states would just rely on the federal government for funding. At the same time the wealthy people/corporations can easily move to another state leaving the middle class to make up for lost revenue.

[pc86]

You deal with it by competing with other states, which is what happens now, and what is intended based on the very architecture of the federal and state governments. This will make Seattle less attractive to the type of person who makes a LOT of money almost entirely from W2 income. Private practice physicians, specialty attorneys, that kind of thing. "Working people" who happen to be very highly compensated.

If I was in that type of role and I could routinely expect to make $1.5-$2M/yr it would absolutely make me consider places like Florida or Texas more, especially with the marriage penalty mentioned in the article (although I'm curious how many households have two people both earning more than $1M/yr).

[soco]

You just... deal? You think about it then make a law in a way or another, instead of this decision paralysis. I also assume all states will think about it (rather sooner than later) so it's all a matter of concern and will - if there's one, because in a world ruled by corporations and billionaires, if it's all left to them, the only ones paying for roads, military or community services will be you, me and our likes (I assumed there aren't many billionaires on HN and also won't be any time soon). The tax breaks trend seems to only increase, right?