High-Tax State Exodus Affects State Populations, Budgets

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For more than 25 years, Rhona Vogel has served as the founding CEO of Vogel Consulting in Brookfield, Wisconsin. Her firm offers families an array of financial management services in areas such as investment advisory, estate planning, and taxation and accounting. As part of her work, Rhona Vogel stays current on various topics that affect her industry, including the high-tax state exodus that is changing parts of the country.

In recent years, New York, California, New Jersey, and other high-tax states have seen some of their wealthiest residents relocate to states with more favorable tax climates. According to data from Chris Edwards, the tax policy director at the libertarian think tank the Cato Institute, nearly 600,000 people from the country's 25 highest-tax states moved to the 25 lowest-tax states in 2016 alone.

The situation became more acute in 2019 when the effects of the Tax Cuts and Jobs Act (TCJA) were seen by taxpayers for the first time. Included among the many reforms of TCJA was a $10,000 cap on state and local tax (SALT) deductions. The cap on SALT deduction only affects those who itemize their returns, and the most-affected taxpayers are high earners.

When these high earners leave high-tax states, they take their income with them, which could create problems for state budgets. In New York, Governor Andrew Cuomo blamed the high-tax exodus for creating a $2.3 billion deficit in his state. Leaders in New York and other states have devised workarounds to circumvent the SALT cap, but they still face future challenges.

Key Stock Indicators

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An accomplished finance and investment professional, Rhona Vogel brings more than three decades of experience to her role as CEO of Vogel Consulting. In overseeing the wealth management firm, Rhona Vogel stays current on industry topics such as stock market performance. 

Stock market indicators are key tools for successful trading. There are numerous indicators investors can rely upon to provide valuable insights into the movement of a stock as well as signal the best time to buy or sell. 

Major indicators investors should keep an eye on include Earnings per Share (EPS), the amount each share would fetch if a company decided to pay out all its profit to its shareholders. EPS is computed by dividing the total profit of a company by the number of its shares.

Price to Earnings ratio (P/E) compares a company’s earnings and its stock price. To get the P/E ratio, divide a company’s current share price by its EPS.

Lastly, Price to Book value ratio (P/B) compares how a company is valued by the market versus what the company states in its financial books. It is computed by dividing the current price per share by the book value – the current equity as listed in its annual report – per share.

Vogel Consulting Wins 2019 Best Family Wealth Counseling Award

Rhona Vogel is an accomplished wealth manager based in Brookfield, Wisconsin. The CEO of Vogel Consulting, Rhona Vogel offers integrated tax planning, estate planning, and investment advice to corporate and high net worth clients. 

On March 20, 2019, Vogel Consulting was named winner of the “Best Family Wealth Counseling” award at the 2019 Family Wealth Report Awards. The firm edged out five other shortlisted firms to be declared the winner of the category. 

The Family Wealth Report Awards recognize financial advisors, banks, and multifamily offices that showcase top-of-the-class performance and innovation. Awards are given for various categories. Candidate firms must first be nominated, after which a shortlist is made for each category. Judges vote for eventual winners on the basis of entrants’ submissions and responses to specific client-focused questions. Independence, genuine insight, and integrity are other factors highly regarded by the judging panel. 

Vogel Consulting’s win added to its status as a standout multifamily office. At the awards dinner held at the Mandarin Oriental, Vogel Consulting CEO Rhona Vogel expressed the firm’s delight in the honor. She also commended the firm’s client services team for the hard work they had done in 2018.

Support the Wisconsin Historical Society

The founder and chief executive officer of Vogel Consulting in Wisconsin, Rhona Vogel has more than three decades of experience as a registered investment advisor and certified public accountant. Alongside her career, Rhona Vogel serves on the boards of local groups such as the Wisconsin Historical Foundation.

Created to support the Wisconsin Historical Society, the Wisconsin Historical Foundation provides funding for a diverse range of programs, from day-long apprentice workshops and children's summer camps to museum construction and outreach efforts. Each of the society's programs seeks to safeguard Wisconsin's historical treasures for future generations.

The Wisconsin Historical Society does receive about 60 percent of its funding from the state, but it relies on generous contributions from individual donors for the rest of its budget. Those interested in preserving historic sites in Wisconsin and helping fund educational programs can become members of the society by visiting www.wisconsinhistory.org. Also visit the website to secure a gift membership for someone else or renew an existing membership.