Liberals like to believe that tax and regulation policies have no effect on the economy despite mountains of evidence to the contrary. The latest proof of this comes via the Tax Foundation which calculated that millions of Americans are leaving high-tax areas like New York or California in favor of lower-tax jurisdictions like Texas or Florida. As a result, the tax-happy states are missing out on billions of dollars in revenues they might have been able to have otherwise had their residents stayed put:
New York State accounted for the biggest migration exodus of any state in the nation between 2000 and 2010, with 3.4 million residents leaving over that period, according to the Tax Foundation.
Over that decade the state gained 2.1 million, so net migration amounted to 1.3 million, representing a loss of $45.6 billion in income.
Where are they escaping to? The Tax Foundation found that more than 600,000 New York residents moved to Florida over the decade – opting perhaps for the Sunshine State’s more lenient tax system – taking nearly $20 billion in adjusted growth income with them.
Over that same time period, 208,794 Pennsylvanians moved to Florida, taking $8 billion in income.
“Many of these New York and Pennsylvania residents no doubt moved to Florida for the warm weather,” says the foundation, a nonpartisan research group. “[B]ut many more may have moved there because the state does not have an individual income tax, an estate tax, nor an inheritance tax.” [...]
California is also known for more onerous taxes and regulations, and the foundation shows similar trends of migration from there to other states like Texas and Arizona.
The Tax Foundation ranked the Golden State sixth highest in the nation for state and local tax burden in 2009.
Between 2000 and 2010, the most recent data available, 551,914 people left California for Texas, taking $14.3 billion in income. Texas has no state income tax or estate tax.
A total of 48,877 people moved to Texas from California between 2009 and 2010 alone, totaling $1.2 billion in income. Another 28,088 from California relocated to Nevada and 30,663 to Arizona, a loss of $699.1 million and $707.8 million in income respectively.