Taxes

NY and CA Lead List of States Americans Want To Get Their Money Out Of

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There's been a lot of buzz in recent years about California hemorrhaging residents, businesses and money to other states. A 2012 Manhattan Institute study found that the state lost 3.4 million residents over 22 years. As Steven Greenhut wrote for Reason at the time, "Business owners talk not just about the costs, but about harassment by myriad government tax and regulatory agencies that often treat them like criminals. Freedom is on the decline as government gains more authority to micromanage virtually everything." Well, California residents can rest a little easy — their state doesn't lead the pack when it comes to people fleeing with what treasure they retain for friendlier climes. No, California is only number two. New York reins supreme when it comes to wealth repellent.

According to a measure of the migration of personal incomes from 2000-2010 prepared by the Tax Foundation, New York lost $45.6 billion to other states, while California shed $29.4 billion. Illinois came in third at $20.4 billion.

Migration of personal income
Tax Foundation

As Richard Borean explains for the Tax Foundation, "When a person moves to a new state, their income is added to the total of all other incomes in that state. This positively affects the total taxable income in his or her new state, and negatively affects the income in the state he or she left." The major beneficiaries of all of this refugee cash were Florida, which gained $67.3 billion, Arizona with $17.7 billion, and Texas, which provided shelter to $17.6 billion.

Speaking as an Arizonan, I can say a sincere, "thanks, neighbor."