“The reason for the panic is that New Jersey relies on personal income taxes for about 40% of its revenue, and less than 1 percent of taxpayers contribute about a third of those collections, according to the legislative services office. A one percent forecasting error in the income-tax estimate can mean a $140 million gap, Haines said.
Tepper’s departure is unexpected: he has lived in New Jersey for more than two decades, initially as an executive at Goldman Sachs where he helped run junk-bond trading during the late 1980s and early 1990s, and then after founded Appaloosa in 1993. His fortune is estimated at $10.6 billion, according to the Bloomberg Billionaires Index.
That makes him as the wealthiest person in New Jersey. Or rather “made” him.
But the worst news is for New Jersey residents who already bear the country’s third-highest tax burden, according to the Tax Foundation in Washington. Along with the nation’s highest property taxes, it’s one of two states that levy both an estate tax on the deceased and an inheritance tax on their heirs. The income-tax rate for top earners is 8.97%. Democratic legislators have repeatedly passed a millionaire’s tax that would increase the levy to 10.75 percent, but Republican Governor Chris Christie has vetoed it each time.
With Tepper’s departure, Christie will have no choice but to comply.”