The Census Bureau and IRS last week also released state population growth and income migration data for 2018 that show the exodus from high-tax to low-tax states is accelerating. Four states have lost population since 2010 including West Virginia (-3.3%), Illinois (-1.2%), Vermont (-0.3%) and Connecticut (-0.2%), but 10 experienced declines last year. New York was the biggest loser as a net 180,000 people left for better climes. Over the last decade New York has lost more of its population to other states (7.2%) than any other save Alaska (8%), followed by Illinois (6.8%), Connecticut (5.6%) and New Jersey (5.5%).
Hmmm, what do these states have in common? Large tax burdens and politically powerful public unions. Illinois’s property tax rates are the second highest in the country after New Jersey. The state lost $5.6 billion in adjusted gross income last year to other states, about twice as much as in 2012. Notably, income outflow hasn’t increased from Michigan or Wisconsin.
So Alaska lost the most population to other states in percentage terms, but the narrative is that the underlying cause of outmigration is high taxes? Sorry, I don’t get it, because Alaska is not a high tax state – it has no state income or sales tax, reasonable property taxes, and every Alaskan actually receives a check from the state each year because it gets so much in royalties from oil companies.
At least for last year, it was a variety of reasons, including cost of living, work opportunities elsewhere, politics, fewer younger people are moving into the state, the population is getting older. Alaska has also been in a recession.
And let’s be honest, Alaska is a difficult place to live for anyone. I know I wouldn’t want to live there.
Bob Out Of Here
6 years ago
If the paragraph about New Jersey needing to lower the threshold for the top rate from $5 million down to $1 million since they aren’t getting the revenue they need to pay pensions doesn’t show IL residents what’s in store with the graduated tax, I don’t know what will. There’s a reason IL won’t put the brackets, rates, and exemptions into the amendment.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
So Alaska lost the most population to other states in percentage terms, but the narrative is that the underlying cause of outmigration is high taxes? Sorry, I don’t get it, because Alaska is not a high tax state – it has no state income or sales tax, reasonable property taxes, and every Alaskan actually receives a check from the state each year because it gets so much in royalties from oil companies.
Google is your friend:
https://www.alaskapublic.org/2019/01/22/alaskas-population-is-down-for-the-second-year-in-a-row-why/
At least for last year, it was a variety of reasons, including cost of living, work opportunities elsewhere, politics, fewer younger people are moving into the state, the population is getting older. Alaska has also been in a recession.
And let’s be honest, Alaska is a difficult place to live for anyone. I know I wouldn’t want to live there.
If the paragraph about New Jersey needing to lower the threshold for the top rate from $5 million down to $1 million since they aren’t getting the revenue they need to pay pensions doesn’t show IL residents what’s in store with the graduated tax, I don’t know what will. There’s a reason IL won’t put the brackets, rates, and exemptions into the amendment.