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Taxpayers Flee High Tax States for Low Tax States

Posted By Daniel Greenfield On December 26, 2012 @ 6:56 pm In The Point | 15 Comments

The People’s Revolution may be experiencing some setbacks due to the notorious propensity of the bourgeois to cling to their guns, bibles, freedoms, wallets and assorted other things.

It would appear that Blue States experiencing a surge of unpatriotic defections as taxpayers flee to places where they won’t have to bleed themselves dry so that the welfare state, and its aligned teachers and nurses unions can enjoy the best benefits in town. They’re leaving the east and going west. And it’s hard to stop them without perhaps building some kind of Berlin Wall.

According to new Census data, New York, Illinois, New Jersey, Connecticut and Rhode Island led the country last year in out-migration (measured as a share of their population). Not incidentally, the Tax Foundation ranks New York, New Jersey and Rhode Island among the five worst business tax climates.

Connecticut, which raised income, sales and corporate taxes last year to the tune of $1.5 billion, is not far behind. Illinois also increased income taxes last year by 67% and the corporate rate by 46% to pay for worker retirement benefits and will likely seek to hike taxes again to backfill the state pension fund, which is $83 billion in arrears.

If, as liberals claim, tax rates don’t much matter, how to explain the exodus from blue states to low-tax havens?

The most popular destination state by far was North Dakota, followed by Wyoming, South Carolina, Texas, Colorado, Florida, Arizona, South Dakota, Nevada and Tennessee. Five of these states—Texas, Florida, Nevada, Wyoming and South Dakota—have no income tax, and all but Colorado are right-to-work states. No surprise, these states are also adding jobs at a faster clip than those losing residents (Unemployment has actually ticked up in New York, New Jersey and Connecticut over the past year).

It’s clearly Berlin Wall time. Build some kind of wall around New York, Illinois and New Jersey and let’s see them try to escape from New York then.


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