Low taxes earn Florida No. 1 rank in wealth migration
This article was originally published by watchdog.org.
A new study by Travis H. Brown called “How Money Walks” explores how people and money migrate from one state to another. And although the exact causes are difficult to nail down, one thing is clear: Americans are moving from high-tax and heavily regulated states to low-tax states with less regulation.
That’s according to the data Brown gathered from the Internal Revenue Service Division of Statistics and the U.S. Census Bureau.
Since 1992, no other state has benefited more from wealth migration than Florida.
An estimated $95.6 billion poured into the state economy, dwarfing Arizona’s next highest gain of $28 billion.
Almost half of Florida’s capital influx came by way of New York, New Jersey and Illinois.
One reason, according to Brown, is Florida’s personal state income tax rate. New York and New Jersey share a top rate of 9 percent while Illinois charges 3 percent of an individual’s gross federal income. But the Florida rate is zero across-the-board.
Similarly, Florida’s 5.5 percent corporate income tax rate is almost half of Illinois’s and well beneath New York and Jersey – an attractive lure for employers willing to relocate.
When adding in lower costs of living and sunny weather, it’s no wonder the Sunshine State’s population grew 23.5 percent since 1990, according to the Office of Economic and Demographic Research. The U.S. Census Bureau estimates Florida’s population to be only 200,000 residents behind New York.
“For a state like Florida, you’re seeing a massive amount of people and their income coming in,” said Brown in an interview with Fox Business host John Stossel.
Here’s a look at the Florida numbers:
Gained Wealth From:
|$18.92 billion||New York|
|$11.41 billion||New Jersey|
Lost Wealth To:
|$1.70 billion||North Carolina|
|$462.62 million||South Carolina|
Within the state, the gulf coast from Tampa to Naples gained nearly $32 billion while Miami lost $5.6 billion.
Contact William Patrick at [email protected] or follow Florida Watchdog on Twitter at @watchdogfla.