People don\’t move because of taxes, eh?

[Population] growth tends to be stronger where taxes are lower. Seven of the nine states that do not levy an income tax grew faster than the national average [over the past 10 years]. The other two, South Dakota and New Hampshire, had the fastest growth in their regions, the Midwest and New England.  Altogether, 35 percent of the nation\’s total population growth occurred in these nine non-taxing states, which accounted for just 19 percent of total population at the beginning of the decade.

Seems that they do actually.

Wonder how long it will be before someone accuses those who move within the EU of being tax dodgers?

(It\’s already happened to me but it was rather a fail: taxes can be higher here than in the UK).

8 thoughts on “People don\’t move because of taxes, eh?”

  1. Isn’t that what the Vodafone case is about? A legal person upping sticks and setting up in a member state as freely as a person might move between say, Wandsworth and Norfolk. And being accused of being tax dodgers in doing so?

    I put it to Ritchie some weeks ago that if you can move freely between EU states, then by definition, no member state can legally be regarded as avoiding tax, given it is simply an expression of freedom in which a member state legally cannot interfere. We can either be in a union with Lux, or regarded it as a tax haven, but we can’t do both.

    I cited him an example of retired Victorians moving to Queensland in the 70s to avoid death duties which some Oz states had at the time. Even though the motive was often tax, the Victorian government constitutionally had no business interfereing with anyone’s decision to move. That’s what a real federation is all about.

    Needless to say, Ritchie just hurrrumphed that he does not agree with freedom of movement of capital and left it there.

    Which just further proves his real definition of tax avoidance is doing anything he doesn’t agree with.

  2. I cited him an example of retired Victorians moving to Queensland in the 70s to avoid death duties which some Oz states had at the time.

    That was a splendid example of tax competition. Because some people moved, all the states ended up abolishing death duties. People kept moving to Queensland though: something about the weather, I think.

  3. I’ve had enough of the UK and its insanely high tax/regulatory burdens. So I’m off. Leaving the UK, I hope for good. But people don’t respond to tax rates and the Laffer Curve doesn’t exist, oh no, definitely not.

  4. Yes, VIC-QLD to retire, and indeed MO-FL to retire. When there’s no opportunity cost, of course tax incidence is important. Hence why the Isle of Man is a much more popular retirement destination for wealthy folk than any other delightful coastal resort on the Irish Sea.

    But Tim N, are you seriously in Nigeria for the taxes (which, IIRC, if they’re paid according to what Nigerian law – yes, haha, quite – says, are high), or for the large salaries required to persuade people who could otherwise live in Norway, Texas or Scotland to somewhere as unlivable as Nigeria?

  5. But Tim N, are you seriously in Nigeria for the taxes (which, IIRC, if they’re paid according to what Nigerian law – yes, haha, quite – says, are high)

    Actually, I pay Swiss taxes and my company pays the taxes wherever I happen to be in the world, which at the moment is unfortunately Nigeria. But the tax-free salary was a huge factor in becoming a permanent expat when I first emigrated, as what really matters is what you get paid Net. Of course, the salaries are high anyway but the fact that they are tax free makes it even more attractive, and for many expats it is the difference between staying and going (especially for those who can command high salaries in decent parts of the world).

  6. People do move around the US. People generally don’t move around europe so much. That is why the study is less relevant to us. But then again, because people do move around more there, they should share a currency, and we shouldn’t.

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