Americans Are Voting With Their Feet For Low Taxes, Less Regulation

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Economics: Forget what economic "experts" or pollsters say about the Republican economic agenda; the people are moving to more conservative states that impose fewer taxes and less regulation.

[ibd-display-video id=3006547 width=50 float=left autostart=true] The latest bit of evidence comes from North American Moving Services, which annually reports where people are moving to, and from, within the U.S.

Its findings show that between 2011 and 2017, 10 states saw a net influx of people from other states in one or more of those years, while 9 suffered losses. The rest of the states saw no net change in any of those years. South Carolina, Arizona, Florida and North Carolina were net winners in most of those years. New Jersey, Illinois, Connecticut, Pennsylvania and Michigan were consistent losers.

What do these states have in common? Gainers consistently show up in lists of states with low taxes, less regulation, and a more business friendly economic climate . Losers are consistently high-tax, high regulation, union-friendly states.

Seven of the states that gained population, for example, rank in the top 10 on business friendliness, according to CEO Magazine. Of the nine states that lost population, five are the least business-friendly.

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Of the states that gained population in one of those years, the average tax burden as a share of state income was 8.8%. The average for losing states: 10.8%.

What's more, as economist Mark Perry notes , the states with net inflows of people are doing better economically than those with net outflows - they had stronger GDP growth, higher employment growth and lower unemployment rates.

The problem is compounded by the fact that as people leave those high-tax states, they take their tax revenues with them.

Yet, some people still try to make the case that there's no real economic benefit to cutting taxes and regulations. President Obama during his eight years in office repeatedly stated that cutting taxes and regulations "never worked."

A recent USA Today op-ed tries to make the case for big-government, but comes up short. The only evidence cited is the fact that high-tech firms are centered in blue states like California, and a dubious WalletHub survey of the most "innovative states" that ranks Washington, D.C., (which isn't a state) No. 1 and Maryland No. 2. Those are thin reeds indeed.

The piece also claims that high-tax states are better places to live because median incomes are higher. "Alaska is the only red state in the top 10," the author notes, pointing to Census data.

But that doesn't take into account the differences in cost of living. A $50,000 income will go a lot farther in Alabama than in Connecticut. Once you account for that, all but four of the top 10 are in red states .

Thankfully, the Republican leadership in Washington is following the model of economically successful states, and not those that are seeing residents flee in search of jobs and opportunities.


Best-Run States Are Low-Tax Republican, Worst-Run Are High-Tax Democratic, Study Finds

New York, California Are Rock Bottom On Economic Freedom - Again

Income Inequality Is Greatest In the Most Liberal States

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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