Taxes

Study shows Americans flock to states with less burdensome taxes

Migration patterns for 2016 show that Americans tended to move away from high-tax states and into states where residents keep more of what they earn.

United Van Lines, the nation’s largest moving company, recently released its annual movers study report showing that South Dakota overtook Oregon as the top inbound destination. Generally, more people moved toward the west, and states in the northeast saw the largest exodus of residents. The top four outbound states in 2016, in order, were New Jersey, Illinois, New York and Connecticut.

The Tax Foundation pointed out in a recent blog post that those results are similar to the organization’s annual state business tax climate index. In fact, New Jersey, which saw an outbound rate of 63 percent — meaning nearly two people moved out of the Garden State for every person who moved in, also finished last in that index. New York had the second worst business tax climate, according to the Tax Foundation. Connecticut was eighth worst while Illinois was more middle of the pack.

The Tax Foundation said the absence of a major tax such as the corporate income tax, individual income tax or sales tax is a common factor among most of the states that rank in the top ten on the business climate tax index.

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