Tax Flight: Behavioral Responses to State Income Taxation | Policy Stories

Policy makers have continued to support tax hikes on high earners in the hope of resolving budget shortfalls. But people respond to changes in tax rates. Tax rate increases in California led many high earners to move, bringing in less revenue than expected.
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Additional Resources
Read “California’s Tax-the-Rich Folly,” by Joshua Rauh. Available here bit.ly/2TYvzjD.
Read “Behavioral Responses to State Income Taxation of High Earners: Evidence from California,” by Joshua Rauh and Ryan J. Shyu. Available here: bit.ly/2SmBpuy.
Read “State Taxation and the Reallocation of Business Activity: Evidence from Establishment-Level Data,” by Joshua Rauh. Available here: stanford.io/3pCp9Cg.
Listen as Joshua Rauh and John Cogan discuss the impact of government-sponsored programs. Available here: hvr.co/3g7X0QD.
Watch “Why Businesses and People Move to New States,” by Lee Ohanian. Available here bit.ly/3zaALRz.
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