A recent study shows that Minnesotans are moving to states with lower income tax rates. | Pixabay
A recent study shows that Minnesotans are moving to states with lower income tax rates. | Pixabay
A ranking of states based on the losses in adjusted gross income (AGI) due to wage earners moving out of state ranks Minnesota 38th among U.S. states, with an estimated loss to statewide AGI of $4.9 billion just between 2010 and 2018.
The Center Square recently reported on research conducted by website Wirepoints, which compared the AGI losses and gains of states with a comparison to how income tax is structured in those states.
For the 17 states on the list that either have no income tax or a flat income tax rate, the overall outlook was one of growth, The Center Square reported. Those states gained 1.9 million residents from states with progressive income tax systems, and enjoyed a cumulative AGI growth estimated at $120 billion from those new residents.
Taking in the lion’s share of that growth was Florida, where the estimated increase to AGI from 2010 to 2018 was $95 billion.
Of states with a progressive income tax, New York was hit the hardest in the estimates, losing an estimated $54.1 billion in AGI during the same time period.
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