Follow Up on Tax Migrations
Rogel, at It Looks Obvious (newly added to the blogroll as well), followed up on my previous article about tax reform in Rhode Island. He did some research on migration related to taxes at the state level and that resulted in this article on his blog. The interesting part is, of course, this:
From 2000 through 2004, a net 1.3 million people moved out of states with taxes on ordinary income and into those without such taxes, says Richard Vedder, an economics professor at Ohio University.
The migration includes folks leaving California, Ohio, Colorado, Illinois, New Jersey, New York and Massachussets. It’s important to note that Vedder was only looking at the trend from states with taxes on income to those without income tax. Based on the changes occurring in New England’s tax structures, I would guess the data would be even more interesting if you looked at states with progressive income tax structures, in general, and where their citizens are going. Would you find that Massachussets had a net loss to New Hampshire until they enacted a flat tax structure? That’s what the Mass Legislature found.
The real question is what impact this new “tax revolt” will have on Federal tax structures.