In every corner of the world, right-wing and even centrist policymakers voice a similar argument: that raising taxes will lead high earners to flee. In the United States, fear of tax flight looms large in blue states, where lawmakers worry local millionaires will decamp for tax havens like Florida and Texas. But research shows that even in states like Illinois, New York and California, millionaires tend to stay put. Why?

Cristobal Young, a sociologist at Cornell and the author of The Myth of Millionaire Tax Flight, argues that even in this era of remote work, the wealthy still rely on local assets: professional networks, concentrated expertise, and more. Drawing on insights from anonymized tax returns and census data, Young documents the reasons that the rich tend to stay in high-tax states despite having the resources and incentives to flee. On this episode, Young discusses his work and its implications for inequality with hosts Steven Durlauf and Geoff Wodtke.