alt Hacker NewsBut at the same time the more money you make the less paying a bit extra to live where your friends and family are is really that big of a concern. Otherwise why are wealthy people living in and around big expensive cities when they can move to any number of other states and pay a fraction of the cost for housing and services. Many people are sitting on a decades worth of pay or more because they don't want to sell their property and move somewhere cheaper.
I expect that cost of living as a percentage of income goes down even as absolute prices go up in most cases. Whereas the taxes we're talking about here go up.
Your logic amounts to assuming you can significantly raise the price relative to other states on the basis that they already pay a bit more which I don't think follows. The degree is off but also the relative difference isn't there. Living in an expensive house in a big city is going to cost extra no matter where you do it but the taxes we're taking about will only exist in some of those cities.
Meanwhile the higher up the income ladder you go typically the fewer constraints there are tying you to a particular physical location. On the extreme end, if you make it high enough it can get to the point where you can literally relocate to a different country without much issue and it may be worthwhile for you to do so.