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Americans continue to avoid high-tax countries in favor of low-tax countries

As radical leftists call for increasingly high taxes at both the state and federal levels, Americans frustrated with current taxes are fleeing to red states with low or no taxes. income.

In fact, the problem has gotten so bad that even the government is taking notice of it. NS IRS Tax Migration DataFor example, there were 8 million migration tax returns representing approximately 14 million people in 2018-2019. That means about 14 million people have moved.

And those who have moved are mainly in the higher income quintile, with the report stating that:

Overall, the average adjusted gross income (AGI) for income defined as non-migrant was higher ($88,420) than income classified as emigrant ($69,878). For the two youngest age groups, under 26 and under 35, there is a small difference between the AGI averages for non-immigrant and immigrant returns. For comparison, for the two middle-aged age groups, 35 under 45 and 45 under 55, the average AGI for non-migrant returns was higher in the two groups, but for the two oldest age groups, 55 under 65 ( $119,375) and 65 and older ($96,512), the average AGI for migrants’ returns is higher in these two cases.

That income figure indicates that one of the main reasons for the emigration could be state taxes, with high-income Americans fleeing higher-tax blue states to the colored states. Reds claim a much smaller share of their income.

RealClearMarkets confirmed that moving from high-tax blue states to low- or no-tax red states in a recent article, say:

The five states that lost the most taxpayers are not exactly known for fiscal constraints. New York, California, Illinois, New Jersey and Massachusetts lost a total of 219,937 taxpayers and more than $28 billion in adjusted gross income (AGI). On average, these states have an effective state-to-local tax rate of 11.8 percent.

On the other hand, the five states that collect the most taxpayers are all low-tax states – in fact, three out of five states have no state income tax. Florida, Texas, Arizona, North Carolina, and Washington State reached a combined 194,340 taxpayers and $28.9 billion AGI, all with an average interstate and local effective tax rate of just 8 ,96%. It’s no surprise that Florida is the big winner here, adding $17.5 billion AGI on its tax base alone.

New York, for example, Yes Income tax rates range from 6.49%-8.82% for those earning more than $80,650, with New York City imposing an additional tax burden on its residents. California, Illinois, New Jersey, and Massachusetts have similarly high income taxes.

Florida, Washington state and Texas have no income tax. North Carolina Yes The fixed income tax rate is 5.25%. Arizona income tax rate To be, the highest, about 4.5%. Although those states use other forms of taxation, the tax burden they place on residents is generally much lower than the tax burden on residents of the states (all controlled by Democrats). implementation) has the highest tax rate to face.

Americans are smart enough to realize it, and although the reasons for emigration are hard to pinpoint, it’s probably one of the reasons driving the migration from New York, California, Illinois, New Jersey, and Massachusetts to Florida, Texas, Arizona, North Carolina, and Washington state. Tax organizations, for example, declare that:

While it is difficult to measure the extent to which tax considerations influence individuals’ decisions to move, it is certain that taxes play an important role in the personal financial considerations of many individuals.

The same report confirmed the trend of people moving from high-tax states to low-tax states, reporting that:

The 2020 National Mobility Study found that Idaho, South Carolina, Oregon, South Dakota, and Arizona are the states with the highest rates of domestic mobility. New Jersey, New York, Illinois, Connecticut and California have the highest rates of outbound migration.

So unless the blue states see high levels of migration or cut tax rates or are saved by Democrats’ efforts to raise state and local tax deductions, it is likely that migration trends will continued, even as those states’ migration to or from varied slightly from year to year.

Source link Americans continue to avoid high-tax countries in favor of low-tax countries

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