The Great Pandemic Wealth Migration – Wall Street Journal

A recent article highlighted the increasing wealth/business migration out of high-tax states to lower/no income tax states. Unfortunately, Washington state is no longer on this list of states

“Notably, four of the 10 states that gained the most income [from migration] in 2020 don’t impose an income tax (Florida, Texas, Tennessee and Nevada). The others have generally low tax burdens. States losing the most income generally have high income and property taxes.”

The article also offered a poignant reminder (one we are all too familiar with in WA) that more tax revenue does not equate to better services, schools, and public-safety

“…high-tax states don’t provide better public services and often have worse schools and public works despite spending more. Democrats seem to forget that taxes are supposed to represent the cost for providing government services, not a penalty for making money or means for income redistribution. These states are pricing themselves out of the market for mobile taxpayers.”

Most importantly, this migration leads to an “un-virtuous” cycle

“When states lose taxpayers, they lose tax revenue that supports public services. Democrats in liberal states try to compensate by raising taxes, which drives away more people. This un-virtuous cycle keeps repeating itself in New York, New Jersey and Illinois.”

Read more: The Great Pandemic Wealth Migration »