News flash: People move out of states with high tax burdens, more regulations and fewer jobs to states with fewer taxes and regulations and more jobs. The former tend to be in Democratic-controlled states, while the latter tend to be in Republican-controlled states.
That report comes last week from Mark J. Perry at AEIdeas, a public policy blog from American Enterprise Institute, a think tank. Perry is a professor of economics and finance at the University of Michigan’s Flint campus. He is known as the creator and editor of the economics blog Carpe Diem.
Perry refers to a Carpe Diem post he made last month in which he studied household moving data from North American Moving Services’ US Migration Report for 2017. Measures included economic performance, business climate (right to work, for example), business climate and individual taxes.
The top five outbound states (where people leave) are: Illinois, Connecticut, New Jersey, California and Michigan. Illinois, Connecticut and New Jersey tied for the worst at 38 percent inbound but 62 percent outbound.
The top five inbound states (which gain population) are: Arizona, Idaho, South Carolina, North Carolina and Tennessee. For example, in 2017, Tennessee had an inbound rate of 58 percent compared to an outbound rate of 42 percent. (Arizona had the best rate of 67 percent inbound and 33 percent outbound.)
Perry also cites USAToday’s recent summary of The Tax Foundation‘s report “Facts & Figures 2017: How Does Your State Compare?” that analyzes the total tax burden in each state, measured as the percentage of a state’s income that goes to taxes for state and local governments (income taxes, property taxes and sales taxes).
Each of the top inbound states have right to work laws. Only one outbound state (Michigan) is right to work. Tennessee was the only state on the two lists to have a 0 percent individual income tax rate. South Carolina was the state on the two lists with the lowest top corporate tax rate (3 percent), while Connecticut and New Jersey tied for the highest (at 9 percent).
The average tax burden of the top five outbound states was 11.2 percent. The top five inbound states have an average tax burden of 8.7 percent. (Tennessee’s tax burden rate is 7.3 percent)
Despite its having a lower tax burden than some states, Tennessee is not perfect, The Tax Foundation says. The Volunteer State has the second highest average combined state and local sales tax rate (9.46 percent) in the nation, trailing only Louisiana (10.02 percent).
[…] The Tennessee Star reported last year, people move out of states with high tax burdens, more regulations and fewer jobs to states with […]
They’re like termites. They ruin their habitat, then move on to fresh graound, and begin the process all over again.
THIS is the reason Nashville, Memphis, Knoxville and Chattanooga will forever be liberal. All the hipsters and college kids here in Nashville cancel out the rest of our vote every time for Council and mayoress–the reason we are moving out of Davidon
Keep taxes low. Strictly enforce e-verify and penalize those not using it.
And no sanctuary cities!!
While Tennessee enjoys the influx of people and business, where is Nashville headed under Moonbeam’s direction? She attempted to make Nashville a sanctuary city and now is attempting to make Nashville one of the highest taxed cities in America.