Last Tuesday, the Wall Street Journal ran an excellent editorial titled “States of Opportunity.”
“But one reason to conclude that taxes are also a motivator is because the eight states without an income tax are stealing talent from other states. They are Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, and each one gained in net domestic migrants. Each one except Florida — which has sky-high property taxes on new homesteaders — also ranked in the top 12 of destination states.
“Politicians who think taxes don’t matter might want to explain the Dakotas. North Dakota ranked second worst in out-migration last year, while South Dakota ranked in the top 10 as a destination. The two are similar in most regards, with one large difference: North Dakota has an income tax and South Dakota doesn’t.”
The editorial also contrasts California, which has lost 1.5 million residents, with Nevada, which is booming. Perhaps our legislature will begin to think logically about this and start cutting taxes. And maybe pigs will fly….