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Do lower taxes actually convince people to move?

Some are arguing that the low tax rates of states like Texas are convincing people to relocate. But some say it's not so simple.
JJ Feinauer, Deseret News Modified: May 30, 2014 at 3:23 pm •  Published: June 2, 2014
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It's not just the wide open spaces that are convincing more and more businesses and individuals to relocate to Texas.

"The numbers are clear," the National Review's John Fund wrote Friday. "Between 1995 and 2010 over $2 trillion in adjusted gross income moved between the states," and according to Fund, low (or nonexistent) tax rates are attracting migrators to states like Texas, Nevada and Florida.

New Jersey and Connecticut, according to Fund, are also working hard to scoop up those who feel the increasing taxes of Mayor Bill de Blasio's New York have become too burdensome.

"You see taxes being increased there,” Fund quotes New Jersey Gov. Chris Christie as telling a group of CEOs at a Wall Street Journal forum. “You have a new mayor in New York who is aggressively talking about increasing taxes in New York City. While I feel badly for New Yorkers, come to New Jersey.”

But some, such as Peter R. Orszag at Bloomber View, think that there is a key element to inter-state migration that writers like Fund (and author Travis Brown, whose book "How Money Walks," informed much of Fund's argument) are overlooking: Those who are moving aren't usually affected by the tax burdens.

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