With the elimination of most state and local tax deductions, Congress has put a bull's-eye on high-tax states like California and New York.
By eliminating SALT deductions without a commensurate shrinkage of federal income tax rates, Congress has set the stage for what could be the greatest migration since the aftermath of World War II, with roughly 15 million people moving from high-tax states to low-tax states in the coming decade.
We're merely predicting that the pace of past migration will roughly double, because the tax difference between states has abruptly widened.
Over 80 percent of the net migration between states, some 12 million people, moved out of high-tax states and into low-tax states.
If the link between tax policy and migration from 2000 to 2017 is any kind of guide, the outmigration from high tax states in the coming decade should dwarf those of the previous 17 years.
If tax migration is proportional to the tax difference, the highest-tax states should lose about 6 percent of their population by 2028, while the zero-tax states should experience about 23 percent population growth.
Most of all, politicians in high tax states must recognize that the very opportunity that has long served as a lure for the best and brightest could be snuffed out if they allow the cost of success to skyrocket in the Empire and Golden states.
https://www.realclearpolitics.com/articles/2018/04/24/the_great_tax_migration__136885.html
By eliminating SALT deductions without a commensurate shrinkage of federal income tax rates, Congress has set the stage for what could be the greatest migration since the aftermath of World War II, with roughly 15 million people moving from high-tax states to low-tax states in the coming decade.
We're merely predicting that the pace of past migration will roughly double, because the tax difference between states has abruptly widened.
Over 80 percent of the net migration between states, some 12 million people, moved out of high-tax states and into low-tax states.
If the link between tax policy and migration from 2000 to 2017 is any kind of guide, the outmigration from high tax states in the coming decade should dwarf those of the previous 17 years.
If tax migration is proportional to the tax difference, the highest-tax states should lose about 6 percent of their population by 2028, while the zero-tax states should experience about 23 percent population growth.
Most of all, politicians in high tax states must recognize that the very opportunity that has long served as a lure for the best and brightest could be snuffed out if they allow the cost of success to skyrocket in the Empire and Golden states.
https://www.realclearpolitics.com/articles/2018/04/24/the_great_tax_migration__136885.html
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