Stephen Moore

Stephen Moore. Photo: Willis Bretz

Low-tax states are outperforming their high-tax counterparts in business growth, job growth, income growth, and population growth.

That’s according to a panel of experts including Heritage Foundation Chief Economist Stephen Moore, economist Arthur Laffer, investor Rex Sinquefield, and tax advocate Travis Brown. They held an important discussion today at Heritage detailing the results of their new book, An Inquiry into the Nature and Causes of the Wealth of States.

Their quantitative research shows the fluidity of wealth and how it’s moving from states with the highest tax burdens to the states with lower tax burdens.

States like Texas, Florida, North Carolina, and Indiana have benefitted as businesses and individuals relocated. High-tax states like California, Illinois, Michigan, and New York are the clear losers. Moreover, states that imposed higher taxes never saw the revenue they anticipated.

Laffer, for example, relocated from California to Tennessee in part because of the difference in tax burdens. He says he misses California, but that the high tax burden forced his move.

Watch the full video of the discussion, and check out their new book.

Tell us in the comments: have you ever relocated your home or business because of a tax burden?

Comments (6)

alexander dziukiewicz - May 31, 2014

I had open heart surgery in 1976 and had to move from N.Y. S because of high property taxes. moved to Florida & had to move because of property taxes. I now live in TN. You do not have to be a rocket person to solve the economy. If people have more in their pocket they will spend it. I have no heard any one tell us that there are 2 middle classes in this country. All the people like Hannity, Rush, Rielly do not know how to come down to my level, street level. There is & Economical middle class & a Social Middle class. The economic middel class go to work pay their taxes that support this great country. The Social middle class do not finically do not support this great country. they are no different than welfare people which I respect more than the ones that are telling them how to live while they are worst than the welfare person. I belonged to a private union & when we went on strike, we had to settle when we ran out of money to support our families where as the government unions just say raise taxes. I can go on more but you I do not think you think like me. you have a lot of good idea’s Came do to peoples street level talk & you will have more people on your side.

Andrew - June 5, 2014

I relocated because of taxes from NJ to Texas. Also, the medical atmosphere in NJ (very anti-private practice) was very poor for physicians and TX was much more accommodating.

Nelson Whipple - June 5, 2014

Taxes were certainly an important factor in my move from Glen Ridge, NJ to Charlotte, NC.

R. W. Varney - June 7, 2014

We moved from CA to OR in 1995, and from OR to ID in 2013, because of taxes and ‘nanny’ governments.

Holly Chapo - June 7, 2014

How I wish I could get out my ultra blue state – New York State. This place is a miasma of liberal group-think and misinformation.

Dennis Jawor - June 11, 2014

After I retired I could no longer afford the ridiculous property taxes in New Jersey. So I sold my house and moved to Florida – lower property, sales taxes and no state income tax. But at closing I was assessed a one percent of the sale price as an exit fee – amazingly it could not be deducted on that years tax return.

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