Initiative 1098: Do State Income Taxes Affect Where the Wealthy Live?

Jun 01, 2010
  • Description

Short Answer: There is no correlation between a state's income tax rate and the percentage of wealthy households living there. Since 43 out of 50 states have a state income tax, most Americans accept it as the norm. Background : People choose where to live based on multiple factors, including jobs, proximity to family, and lifestyle preferences. The fear sometimes expressed that a state income tax on high income households will drive wealthy people from the state is not supported by the evidence.