Do state taxes matter in relocations?

proptax“Differences in tax levels among states have little to no effect on whether and where people move, contrary to claims by some conservative economists and elected officials,” according to a new report by the left-leaning Center on Budget and Policy Priorities. It found that most people who move between states do so because of climate or employment opportunities, not because of state taxes. In fact, it found that people are nearly as likely to move from low-tax states to high-tax states – and in some cases more so. Though factors such as weather, jobs and family are more important in most relocation decisions, the right-leaning Tax Foundation counters that “taxes matter on the margin.” It also argues that the “slow and steady process by which better tax policies support stronger economic growth will likely promote higher job growth and, in turn, more inward migration.”