John Fund of NRO:
The numbers are clear. Between 1995 and 2010 over $2 trillion in adjusted gross income moved between the states. That’s the equivalent of the GDP of California, the ninth largest GDP in the world. Some of the movement might be due to weather — that helps to explain some of Florida’s $86.4 billion gain and New York’s $58.6 billion loss. But we can attribute a great deal to the fact that capital flows to where it is best treated. Travis Brown, author of the new book How Money Walks, reports that the nine states without a personal income tax gained $146 billion in new wealth while the nine states with the highest income tax rates lost $107 billion.
This is the point where people in the states getting the influx start muttering that the people fleeing from high-tax states often bring bad fiscal habits and ways of thinking with them, and that’s a legitimate point. On the other hand, at least some of those people are moving precisely because they want to get away from the aforementioned bad habits; besides, this isn’t Soviet Russia. People are allowed to move: actually, they can just move, and there’s nothing ‘allowed’ about it. So I suggest a careful program of acquainting new residents in the joys of a relatively smaller-government way of life…
Continue reading More taxpayers voting with their feet.