Americans move from one state to another for a variety of reasons.
While experts disagree about whether tax competition between states plays a large or small role in these relocation decisions, a new study finds that taxes are actually a factor for migration and will increase in importance as a result of the 2017 tax reform.
The only high-tax state that saw in-migration was Maine.
No matter how one views and dissects the data, Edwards shows that state tax levels and net migration flows are highly correlated.
By limiting to $10,000 the amount of state and local taxes, or SALT, that people can deduct from their federal tax bill, many in high-tax states will feel the bite of their taxes more than they did before.
Another Cato study from 2016 called Freedom in the 50 States finds a strong correlation between migration and economic freedom after controlling for climate and other variables.
The fact is that when it comes to where people choose to live, intrinsic characteristics of a state weigh heavily in the decision.
http://reason.com/archives/2018/09/20/state-migration-increasingly-driven-by-t
While experts disagree about whether tax competition between states plays a large or small role in these relocation decisions, a new study finds that taxes are actually a factor for migration and will increase in importance as a result of the 2017 tax reform.
The only high-tax state that saw in-migration was Maine.
No matter how one views and dissects the data, Edwards shows that state tax levels and net migration flows are highly correlated.
By limiting to $10,000 the amount of state and local taxes, or SALT, that people can deduct from their federal tax bill, many in high-tax states will feel the bite of their taxes more than they did before.
Another Cato study from 2016 called Freedom in the 50 States finds a strong correlation between migration and economic freedom after controlling for climate and other variables.
The fact is that when it comes to where people choose to live, intrinsic characteristics of a state weigh heavily in the decision.
http://reason.com/archives/2018/09/20/state-migration-increasingly-driven-by-t
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