NY, Cali. biggest losers as wealthy fled to low-tax states in 2020: IRSBy Ariel Zilber
June 6, 2022
The coronavirus pandemic triggered a “wealth migration” which saw high-tax states like New York and California lose high-income earners to low-tax locales such as Texas, Florida, and Arizona, according to data from the Internal Revenue Service.
New York’s tax base shrank by $19.5 billion while California lost $17.8 billion as a result of workers fleeing those states during a time when lockdown measures allowed employees to work remotely, according to the Wall Street Journal.
Other high-tax jurisdictions such as Illinois ($8.5 billion); Massachusetts ($2.6 billion); New Jersey ($2.3 billion); and Maryland ($1.9 billion) also saw an exodus of workers during 2020.
The states that reaped the benefits of the “wealth migration” include Florida, which gained an additional $23.7 billion in gross income; Texas, which gained $6.3 billion; Arizona, which took in $4.8 billion more; North Carolina ($3.8 billion); South Carolina ($3.6 billion); and Tennessee ($2.6 billion).
Four of the top 10 states that gained the most income in 2020 do not have a state income tax, according to the Journal. The other states on that list — Idaho, Utah, Wyoming, Colorado, Montana, and South Carolina — are known to have low tax burdens.
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Source:
https://nypost.com/2022/06/06/ny-cali-biggest-losers-as-wealthy-fled-to-low-tax-states-irs/
