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New Jersey Budget Could Head South — Just Like Its Billionare

SCOTT SIMON, HOST:

Americans come and go a lot, but the move of one New Jersey man may put a hole in the state budget. David Tepper, a hedge fund manager with a fortune estimated at more than $10 billion, has been ranked as the wealthiest person in New Jersey, until January, when he moved to Florida, which has no personal income tax. New Jersey draws 40 percent of its state revenue from personal income taxes. The wealthiest 1 percent of taxpayers pay about a third of that revenue.

So a state budget officer told a New Jersey Senate committee this week that it would be hard to forecast next year's state budget because David Tepper has moved, which will cost tax revenue for the state. Mr. Tepper has reportedly earned more than $6 billion over the past three years and may have paid half a billion dollars in taxes. New Jersey has the third highest tax rate in the country. People close to Mr. Tepper told CNBC that he's moved to Florida to be closer to his mother and sister. Transcript provided by NPR, Copyright NPR.