Domestic Migration: State to State Moves

by | Mar 20, 2020 | Opinion, Special Alerts

Domestic Migration: A Benefit of Federalism

The United States is comprised of individual states, each having their own sovereignty.
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
Those powers are ones reserved specifically for the states or are of a traditionally state scope.
These consist mostly of police powers, establishment of health regulations, licensing, and education.

States can deal with different issues in the fashion their people and representatives choose.
Consequently, people are able to move to states that reflect their views and needs.
Abortion advocates might choose to live in a state with minimal prohibitions, like New Hampshire.
Gun rights advocates would avoid the stringent regulations of a state like New York or Massachusetts.

Most interesting is the disparities in state tax structures and rates and the choices people make.
With few exceptions, people generally prefer to live in states that have a lower tax burden
They then retain more of their earnings to spend as they, rather that State bureaucrats, see fit.

This desire is evident in analyzing patterns of people moving from state to state.

Click here to see the 2019 US Migration Report done by North American Moving Services.
North American states that moves are motivated by state taxes, climate and job prospects.
North American references a Kiplinger report on “The 10 Most Tax-Friendly States in the U.S.”

Economic outlook of states is affected by tax rates, regulatory burdens and labor policies.
Low taxes and spending, controlling growth of government improve competitiveness and economic growth.

States like California care about Domestic Migration, if only because it impacts their tax receipts.

Americans for Tax Reform related 2013 migration and AGI impact to Governors’ party affiliation.
Top 5 loser states for Democrat governors in 2013:
– New York (114,929 people with $5.7 billion in AGI)
– Illinois (68,943 people with $3.8 billion in AGI)
– California (47,458 people with 3.8 billion in AGI)
– Connecticut (14,453 people with $1.8 billion in AGI)
– Massachusetts (11,915 people with $1 billion in AGI)
Top 5 winner states for Republican governors in 2013:
– Texas (152,912 people with $6 billion in AGI)
– Florida (74,094 people with 8.3 billion in AGI)
– South Carolina (29,176 people with 1.6 billion in AGI)
– North Carolina (26,207 people with $1.5 billion in AGI)
– Arizona (16,549 people with $1.5 billion in AGI)

American Legislative Exchange Council (ALEC), works to develop fiscal policy solutions for the states.
They compare the states on matters such as tax rates, regulatory burdens and labor policies.
Click here to read: “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.”

Click here to see the ALEC ratings for New Hampshire.
The ALEC data shows New Hampshire is a state that people want to move to.
Low taxes and frugal government make a difference!

Posted by GST Chairman Ray Chadwick


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