High Tax States Losing Billions
March 25, 2014
New research reveals the billions of dollars that high-tax states are losing as taxpayers move elsewhere, says the Fiscal Times.
How Money Walks, a new book by Travis H. Brown, reveals that states with high income taxes saw large amounts of money move to low-tax states.
- Looking at 18 years of data, from 1992 to 2010, Brown found that $68.1 billion in income moved from New York, $19 billion of it moving to Florida, which has no state income tax.
- In fact, New York was a net wealth recipient from only one state: Michigan.
- California's top tax rate is 12.3 percent, and it also saw a net $45.3 billion leave its state. The top recipients of the California cash were Nevada and Arizona. Nevada has no income tax and Arizona's top rate is only 4.45 percent.
- All nine of the states with no income tax or that tax only interest and dividend income saw net inflows. The states that received the most? Florida ($95.6 billion), Arizona ($28.3 billion), North Carolina ($25.2 billion) and Texas ($24.9 billion).
Clearly, taxpayers are aware of the tax burdens in these states and are taking their money elsewhere.
Source: Rob Garver, "High Tax States Are Losing Billions," Fiscal Times, March 17, 2014.
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