{"id":7030,"date":"2024-04-05T22:00:26","date_gmt":"2024-04-05T19:00:26","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=7030"},"modified":"2024-04-05T22:00:26","modified_gmt":"2024-04-05T19:00:26","slug":"tax-the-rich-theyll-just-leave-century-of-data-shows","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=7030","title":{"rendered":"Tax The Rich? They’ll Just Leave, Century Of Data Shows"},"content":{"rendered":"

RIVERSIDE, Calif. \u2014\u00a0<\/strong>Taxes are the one topic all Americans can probably find common ground \u2014 nobody likes them! However, some people have the ability to do something about it. Researchers from UC Riverside looked at how state income taxes have affected Americans for more than a century. The findings are simple: when states raise their taxes, Americans making good money leave<\/strong>.<\/p>\n

You may have seen stories about the recent mass exodus of Americans from high-tax states like New York and California to \u201cgreener pastures\u201d in Florida or Texas. According to the new study, published in the American Economic Journal: Economic Policy<\/em>, this is not a modern trend<\/strong>. It turns out Americans have been moving to keep more of their wealth since the introduction of state income taxes.<\/p>\n

Ironically, state governments started implementing income taxes in an effort to redistribute wealth. States would tax residents and then, in theory, use that revenue to benefit the poorest parts of the population \u2014 essentially leveling the income playing field. However, researchers found that the plan often backfires. Historically, raising income taxes doesn\u2019t bring in the revenue states hope for because Americans with the means to move will leave for other parts of the country where they can maintain their standard of living.<\/p>\n

Specifically, researchers examined state tax policies from 1900 to 2010. They found that states adopting income taxes increased revenue per capita by 12 to 17 percent. However, this increase did not match up with the increases in total revenues for the government.<\/p>\n

\u201cPersonal income tax means a tax upon labor income, first introduced for the purpose of redistribution of wealth,\u201d says Ugo Antonio Troiano, an economist and associate professor at UC Riverside, in a university release. \u201cThe idea was to provide services to poorer parts of the population and reduce inequality between low-income and high-income residents.\u201d<\/p>\n

It turns out Americans have been moving to keep more of their wealth since the introduction of state income taxes. (Photo by Susan B Sheldon on Shutterstock)<\/figcaption><\/figure>\n

When The Going Gets Tough, The Rich Get Going<\/h2>\n

The explanation is a simple one, Troiano says. People with higher incomes have the ability to be more mobile. This doesn\u2019t just mean they can go to nice places on vacation. It means they can also move their families out of states they don\u2019t like anymore.<\/p>\n

The researchers add that this ability to move to places with little to no state income tax is a very American phenomenon. In Europe, people have less ability to move to avoid income-crushing taxes. This is mainly due to language barriers between the various countries in Europe, Troiano says. For example, someone in the United Kingdom has a harder time moving to Italy just for tax breaks if they don\u2019t speak Italian.<\/p>\n

In America, the study finds that the phenomenon of out-migration<\/strong> didn\u2019t slow until the 1980s. However, things may be ramping up again, as Americans appear to be looking for an escape from high taxes and rising costs. While New York and California highlight the modern issues of state taxes and out-migration, the researchers note that taxes have been an issue in plenty of different places throughout American history.<\/p>\n

\u201cIn New Mexico, the legislature repealed its first income tax law in 1920. In Iowa, the state assembly passed an income tax bill in 1932 that was subsequently defeated in the state senate. In Colorado, the governor vetoed an income tax bill passed by the legislature in 1935. With the exception of Washington, however, all of these states would eventually introduce an income tax,\u201d the study authors state in their paper.<\/p>\n

There are only 6 states that have never introduced individual income tax:<\/strong><\/p>\n

    \n
  • Texas<\/li>\n
  • Florida<\/li>\n
  • Nevada<\/li>\n
  • South Dakota<\/li>\n
  • Washington<\/li>\n
  • Wyoming<\/li>\n<\/ul>\n

    So, what should state governments do about this? While reducing income inequality is a noble goal for any state, researchers say government officials should be more mindful of simply sending a tax bill to the rich in order to fix the problem.<\/p>\n

    \u201cRaising taxes too much might backfire, as the state might lose too many relatively wealthy contributors,\u201d Troiano concludes.
    \n
    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Fact: When states raise their taxes, Americans making good money leave.<\/p>\n","protected":false},"author":6,"featured_media":7031,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[5185,3492,3385,2143,2511,2369,716,3210,201,415,5098,658,4407,2294,3398,4773,1823,959,2841,2796,419,4484,2446,961,821,2628,393,3682,4833,864,5051,1354,5186,1270,1806,4228,1065,4505,1183,197,257,3519,4928],"class_list":["post-7030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-americans-leaving","tag-bill","tag-california","tag-common-ground","tag-costs","tag-data","tag-economic-policy","tag-escape","tag-europe","tag-government","tag-governor","tag-history","tag-hope","tag-income","tag-income-tax","tag-income-taxes","tag-increase","tag-inequality","tag-introduction","tag-issues","tag-italy","tag-labor","tag-match","tag-mexico","tag-migration","tag-money","tag-new-york","tag-personal-income-tax","tag-policy","tag-population","tag-raising-taxes","tag-release","tag-revenue-per-capita","tag-rising-costs","tag-services","tag-state-income-taxes","tag-tax","tag-tax-breaks","tag-taxes","tag-united-kingdom","tag-vacation","tag-washington","tag-wealthy"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nTax The Rich? 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