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