State Fiscal Policy and Tax Competition: Are Americans Fleeing High‐Tax States?
Cato Sponsor eBriefing
Thursday, October 18, 2018
3:00 – 3:30PM EST
Featuring Chris Edwards, Director of Tax Policy Studies and Editor of www.DownsizingGovernment.org; moderated by Caleb O. Brown, Director of Multimedia.
Cato’s new Fiscal Policy Report Card on America’s Governors grades the governors on their taxing and spending records from a limited‐government perspective. In the report, Chris Edwards describes the efforts of governors in recent years to either raise or cut taxes and spending. He argues that governors should aim to deliver better services at lower costs, which is especially true today because the 2017 federal tax reform law ushered in a new era of state tax competition.
A separate Cato study by Edwards looked at state tax policies and interstate migration. He found that 24 of the 25 highest‐tax states are suffering from net out‐migration. The exodus—especially of higher earners—from high‐tax states such as New York to low‐tax states such as Florida will likely increase in coming years.
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