California Taxes Move $15 Billion To Three Other States

Originally posted by KazetNagorra
It certainly happens, although its impact is often overstated by partisan think-tanks such as the one cited in the OP. Having said that, having smaller differences in taxation between states and nations would be beneficial.

Perhaps large difference in taxes are beneficial since people can pick tax rates and service rates that they desire.

I personally would want a lower tax rate even if that meant less of certain benefits.
Someone else might want to pay a higher tax bill if that meant larger benefits. Would it be so bad if different types could be accommodated?

Originally posted by quackquack
Perhaps large difference in taxes are beneficial since people can pick tax rates and service rates that they desire.

I personally would want a lower tax rate even if that meant less of certain benefits.
Someone else might want to pay a higher tax bill if that meant larger benefits. Would it be so bad if different types could be accommodated?

I don't have a problem with that, I was more aiming at bookkeeping issues with comparable overall taxation.

Originally posted by KazetNagorra
Not many multimillionaires are going to go through the trouble of moving to find a new job, leaving family behind etc. just because they have to pay an additional $40k for every million they make. It might "spark debate" and partisan think-tanks might argue otherwise, but this is not generally a serious issue even in places where the difference in taxes ...[text shortened]... id that, if there is an easy way to evade this tax (without moving) then people probably will.

I think you'd have to be a bit more careful here, using the argument that rich folk might stay and pay more tax if the Ca Gov might eventually, one day, possibly, get their books a little in order, or even balance them, then the incentive to move would be twice if you could move to a state with lower tax and a better state guvmint financial position.

Originally posted by KazetNagorra
Not many multimillionaires are going to go through the trouble of moving to find a new job, leaving family behind etc. just because they have to pay an additional $40k for every million they make. It might "spark debate" and partisan think-tanks might argue otherwise, but this is not generally a serious issue even in places where the difference in taxes ...[text shortened]... id that, if there is an easy way to evade this tax (without moving) then people probably will.

Population decline in Michigan just came to an end two years into Republican governor Rick Snyder's first term.

It steadily eroded during two terms under Democrat governor Grandholm.

There are lots of reasons to move, and the reasons differ for every individual. There is plenty of evidence that taxation is a significant factor, all other things being equal.

Originally posted by no1marauder
Merely moving does not release you from taxes for income earned in a particular State.

Some States don't have any income tax. Others, notably New York tries to get you to pay taxes to NY on all income even if only a small portion is earned in NY.