retirement planning services since 1987

Blog

Higher Taxes, Lower Populations

Americans are leaving high-tax states in droves.

Over the past decade, 5 million Americans have relocated from high-tax states to low- or no-tax states.

And it’s not weather or jobs – it’s taxes.

None of the ten highest tax states voted Republican, while only three of the 10 lowest tax states voted for Hillary Clinton.

From 2007 to 2016, all but three of the highest 25 tax states lost population. New York (1.3 million), California (928,000), Illinois (717,000), New Jersey (516,000) and Ohio (346,000) lead the way.

However, over the same period, the biggest gains were in low- or no-tax states like Texas (1.4 million), Florida (845,000), North Carolina (549,000), South Carolina (361,000) and Washington (313,000).

Overall, 4.9 million Americans went from the 25 highest-tax states to the 25 lowest-tax states.

Perhaps coincidentally (or not), the states with the highest tax burdens are the worst at balancing budgets and often have poor fiscal health overall.

My conclusion is that poorly managed states force taxpayers to cover for bad choices.

And as this migration shows, taxpayers aren’t standing for it. Their leaving suggests high-tax states need to lower taxes and/or cut spending if they want to stop population losses.

As it stands, the “polling” is clear – Americans are voting with their feet and moving trucks.

Share this post

Share on facebook
Share on twitter
Share on linkedin
covid-19 update

We want to let you know we’re keeping things clean and being cautious.

We have adopted the following procedures for all meetings at our office, including the appointment we have scheduled with you:

Send us a message and receive a complimentary follow-up call from one of our team members!
X
X