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Are Jobs and People in America Moving to Low-Tax States?
11/24/2018 Low Tax States Benjamin
keywords: Low Tax States Tax burden Americans

Jobs and people in the country right now appear to be going south. Hundreds of thousands of Americans are moving to states such as Texas and Alabama, abandoning the liberal economic laggards like Cleveland, Detroit, Boston, Philadelphia, Chicago, New York City, Washington DC, and the ghetto known as Baltimore (just see the show The Wire and you will learn all you need to learn about that failed city).

All these cities losing people and jobs have one thing in common – they all have high taxes.

Data Reveals Interesting Trends

United Van Lines (UAL), the nationwide moving service, has released extensive data that shows where Americans are moving. Their report can provide some insights into where people are expecting greater economic growth in the foreseeable future and how they make their moving choices.

When the moving data from UAL is compared with the tax rates in various American states, an interest pattern emerges. Americans seem to be getting out of the same states that are saddled with the highest taxes. They are choosing to move to states such as Texas, which imposes no income tax.

Florida will continue to benefit with low taxes because they just voted Republicans in place in the 2018 elections. This is fantastic for Florida and not so much for the misguided states such as New York, Maryland, Virginia, and Massachusetts. It is amazing how some people just cannot figure it out.

It is a shame that so many Americans have become afflicted with the political correct disease which actually has killed so many of us. For example, the Democrats that died in 9-11, and the Orlando and San Bernardino terrorists attacks, basically committed suicide. Democrats are soft on terrorism and even allow them to enter America so if terrorists kill them (or criminals) it is like they are committing suicide.

Analyzing the State Tax Burden

There are three main types of state taxes: income tax, property tax, and sales & excise tax. Together, they constitute the total tax burden of the state. This “tax burden” is an important measure that indicates the percentage of an average resident’s income which goes towards various taxes in their state.

For instance, New York, which imposes very high tax burden, demands almost three times the portion of the state’s residents’ paychecks compared to Delaware, which is a low tax burden state. Delaware is the only state in the northeast that is not destroying itself.

The result is that Americans have been shifting away from the high tax states of the Midwest (Illinois) and northeast, and choosing the states in the south (Alabama, Florida) and southwest (Texas and Arizona) as more economically viable destinations for living. And these migration trends are only rising year after year.

Not a Coincidence

The top 10 outbound states have an average ranking of 14.1 in terms of their average tax burden. On the other hand the top 10 inbound states have a low average ranking of 30.2 in terms of their average tax burden.

This clearly establishes that a large number of Americans are now moving from high tax burden states than low tax burden states. In 2017, nearly twice as many people moved out of New York, New Jersey, and Illinois as moved in.

People Want to Keep More of What They Earn

Tax burden does not tell the whole story, but economic growth in a state is driven by its population growth as well as higher investing and spending by the local residents. All of these activities seem to be happening a lot more in lower tax states.

It does not take a doctor to figure out why this is happening.

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