Cato tackles tax reform and interstate migration

The libertarian Cato Institute tackles the links between tax reform and interstate migration in this new report.

Chris Edwards of Cato offers a brief teaser:

The 2017 tax reform law increased the state/local tax pain of living in a high-tax state for millions of people.

Will the law induce these folks to flee to lower-tax states?

To find clues, the study looks at recent IRS data and reviews academic studies on interstate migration.

In 2016, almost 600,000 people moved, on net, from the 25 highest-tax states to the 25 lowest-tax states. In that year, 24 of the 25 highest-tax states suffered from net out-migration.

Some people move from New York to Florida for the sun, but something else is going on as well.

 

Mitch Kokai / Senior Political Analyst

Mitch Kokai is senior political analyst for the John Locke Foundation. He joined JLF in December 2005 as director of communications. That followed more than four years as chie...

Reader Comments