More Evidence That State Taxes Influence Mobility, Job Creation

[Confederate Kahanist]

http://www.washaceblog.com/2010/04/more-evidence-that-state-taxes-influence-mobility-job-creation.html




The Christian Science Monitor's Mark Trumbull reported yesterday on the correlation between taxes and mobility.

    Seven of eight states with the biggest population outflows have high state taxes.

States without income taxes - for now, that list includes Washington - tend to do better.

    Nine states levy no income tax, according to the Tax Foundation, a research group in Washington. Those are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington State, and Wyoming.

    Of those nine, all but one – Alaska – saw more people migrating in than out (within the 50 states) during the period from 2000 to 2008, according to research by the Empire Center for New York State Policy.

Taxes matter. So do long-term prospects, he notes.

    The consequences of migration can be significant. Most people migrating from one state to another aren't rich, but a good number are big-spending consumers, job-creating entrepreneurs, or philanthropists. One Boston College study found that New Jersey saw $168 billion in wealth walk out of the state from 2004 to 2008.

    If you live in a high-tax state and are thinking about that moving-van idea, remember to think about not just current tax rates but potential future ones as well. States in "fiscal peril" from unmet budget obligations may have to raise taxes.

Think about the implications and talk to legislative candidates about their plans. We cannot afford another session like the last one.