Posted on 01/23/2017 8:01:19 AM PST by VitacoreVision
The American Legislative Exchange Council (ALEC) just released its latest Rich States, Poor States study showing how states measure up in economic performance based on three variables, and then ranking them in a forecast based on 15 variables. Its conclusion is the same this year as in the past:
Generally speaking, states that spend less — especially on income transfer programs, and states that tax less — particularly on productive activities such as working or investing — experience higher growth rates than states that tax and spend more.
A United Van Lines report confirms ALEC’s conclusions: Retirees, who make up about a quarter of moves tracked by the company, are leaving high tax states such as New Jersey, New York, and Connecticut, and heading for South Dakota, Oregon, Idaho, Washington, Nevada, and Arizona. After analyzing the UVL data, Michael Stoll, an economist at UCLA, concluded:
This year’s data clearly reflects retirees' location preferences. We are seeing more retirees than ever decide to relocate, and as a result, new retirement hubs are popping up in Western states.
South Dakota took the top spot away from Vermont and Oregon for the first time in the mover’s 40th Annual National Movers Study, with more than two moves into the state for every move out.
Those suffering out-migration are the high-tax, high regulation, Democrat-controlled states of New Jersey, Illinois, New York, and Connecticut.
There are many more factors involved in a decision to pull up stakes and move than just taxes, but there is, as Nicole Kaeding of the Tax Foundation noted, "a relationship between taxes and migration. Individuals move for a variety of factors: climate, job opportunities, family … [but] taxes influence the decision too. Tax rates and structure affect a state’s economy; states with less burdensome tax structures and lower rates tend to have better economic growth. Increased job opportunities can result from the better economic growth."
These factors figure more prominently into decisions by millennials than for retirees, the other three-quarters of the moves tracked by United. In its Rich States, Poor States study, ALEC provides synopses on every state in the union. For South Dakota, for example, ALEC noted that the state ranked 12th out of 50 in its performance and 11th out of 50 in its economic outlook. For starters, the state levies no personal income tax or any corporate income tax. It has no estate or inheritance tax. Its property tax burden ranks it 21st out of the 50 states, while its debt service absorbs just seven percent of the state’s revenues, putting it in 20th position nationally. And it’s a right-to-work state.
Compare that to Connecticut, often referred to as the "poster child for out-migration" among the 50 states. In economic performance it ranks 45th among the 50 states, while in outlook it is in 47th position. It levies a personal income tax of up to 6.99 percent and a corporate income tax of up to 9 percent, ranking the state in 34th and 42nd positions respectively. Its property tax burden is $43.55 per $1,000 of personal income compared to South Dakota’s $27.70. Connecticut levies both an estate tax and an inheritance tax and is a union-centric state with no right-to-work law in place.
When these studies were reviewed by The New American in June 2015, it concluded that "given the opportunity, hard-pressed taxpayers are moving from Blue to Red, from high-tax locales to lower-tax states, and from high-debt to lower-debt communities."
Little has changed in the interim.
And sadly, a good number of them will bring their Welfare State voting habits with them and do their best to turn nice prosperous Red States into Blue States.
Interesting article. Thanks for posting.
which will increase taxes and the cycle will continue.
Something about crapping where one dines. . .
Unfortunately very true
How can they be so stupid ?
A previous generation of state sovereignty-respecting justices had put it this way.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
Once unconstitutional federal taxes are stopped then the states will probaby find a tsunami of new revenues that they won’t know what to do with and won’t have to harrass the taxpayers (as much) to raise revenues.
If you own and operate a small business, you simply have no choice. If you are an employee of a large company, state taxes and regulations won’t matter much until they lay you off in your mid-40’s.
Some....but mostly they are productive people who were highly taxed......and that excludes most liberals
Texas always shows up as one of the top states to move to with a good economy. Problem is they never consider Texas is #12 for the highest property tax. Property taxes are raised religiously 10% each year.
Yep. Look what the escapees from California have done to other western states.
And northern liberals have pretty much destroyed much of Florida and taken over much of the south.
"That's not the way we do it back home."
"We love it here but why don't you ignorant southerners have better welfare, more free stuff, better public transportation,
stronger labor unions, more gun laws, free child care, a state symphony, more museums, blah, blah, blah, blah, blah.....
If you have to live in a high prop tax state, buy an inexpensive home.
It’s part of the progressive master plan. Get people to move and turn red states blue. It’s happened in NM, CO, OR, WA. It also worked in CA assisted by massive Latino immigration. Similar to the moslem master plan to take over the world by exporting their people around the world. Moslems even have a word for it - the “hiraj,” aka “jihad by emigration.” Maybe the progs could borrow that word to describe their infiltration into the free states.
Libs are like the Borg. What they can’t assimilate, they destroy.
And it's for this reason I've ruled out Texas for a vacation home.
Louisiana and Alabama, with their extremely low property taxes, make for a far better second-home investment.
In Oregon we don’t have sales tax but we make up for it with property taxes and income taxes.
Yep, they bring their “enlightened” liberal ways with them when they move. It’s like spreading an infectious disease.
“a good number of them will bring their Welfare State voting habits”
Yup, think North Carolina...they have infiltrated the school systems and city councils. States like South Carolina have taken notice ....
I did and at the time taxes equaled 2 weeks of income. Today, taxes on same old 1500 sq ft crappy house equals 3 1/2 months of income. This is Texas’ big fat lie.
Because most of those states that are losing citizen work force
are giving 'freebies', and adding welfare benefits (for re-election)
but fail to submit, or balance a budget !
The increase in "incidental taxes", or "hidden taxes" add up (State sales tax, gas tax, thruway fees, bridge tolls, water tax, sewage tax, telephone tax, etc.)
and the electorate are not oblivious to the increases, so .. they vote with their feet !
In truth, they are soon told to leave their old voting habits at the curb in their old home state....or in other words, “when in Rome”.
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