This week it was reported that the The General Electric plant on Route 4 in Fort Edward is slated for closure. GE announced its intent to move capacitor production to Clearwater, Fla. This is part of a larger national trend where businesses and people are flocking to low tax states.
A new book, How Money Walks – How $2 Trillion Moved Between the States, and Why It Matters by Travis Brown offers hard data on the economic contest among the states.
Brown uses official IRS statistics to produce hard data about the massive movement of American working wealth within the country. Between 1995 and 2010, the nine states with no personal income taxes gained $146.2 billion in working wealth. The nine states with the highest personal income tax rates lost $107.4 billion. The 10 states with the lowest per capita state-local tax burdens gained $69.9 billion. The 10 states with the highest per capita state-local tax burdens lost $139 billion. Simply put money, businesses, and people moved from high-tax to low-tax states.
And the tax that seemed to matter the most? The personal income tax. The states with no income taxes gained the greatest wealth, while the states with the highest income taxes lost the most.
Mr. Brown is on a national speaking tour promoting his book, which is highlighted in the video below.
httpv://www.youtube.com/watch?v=kmMYORkU-No
Sadly, New York state is one of the states losing jobs, businesses, and income due to it’s high tax status.
Mr. Brown’s website has a “Money Walks App” which lets users track by state, not only how income is shifting, which jurisdictions are benefiting.
http://www.howmoneywalks.com/web-app/