Perhaps nothing better illustrates the causes of income inequality in America today than the vast differences in educational attainment between high-income households and low-income households. Nearly 70 percent of...
- The Tax Policy Blog
- Sparking Debate over State Migration
Sparking Debate over State Migration
Our Monday Map series has generated an impressive amount of discussion over the years, with our friends and critics alike starting debates over everything from local sales taxes to beer excise rates. Few of them, however, have sparked as much discussion as out recent map on migration of income among the states.
That map draws data from our interactive State Migration Calculator, and illustrates the interstate movement of income over the previous decade, from 2000 to 2010. When a person moves to a new state, their income is added to the total of all other incomes in that state. This positively affects the total taxable income in his or her new state, and negatively affects the income in the state he or she left.
In addition to local and regional stories focusing on individual states like New York, Rhode Island and Maryland, the question of where Americans are migrating and for what reasons was a topic of debate on Friday's episode of The Kudlow Report on CNBC.
Larry and the panel came to some very strong conclusions, so we should repeat the caveat we also present with the data. There a lot of different reasons that motivate individuals to move from one state to another, from weather and schools to relationships and job opportunities. Taxes certainly aren't the only reason, but they do enter into the mix. More importantly, they're one of the few motivations that state lawmakers have direct control over. No state can legislate itself sunny days or beautiful beaches to attract new residents, but they can always reform their tax code.
Buy this blogger a cup of coffee!
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.