"If Minnesota does not fix their tax issue, they will end up being the California of the north."
Yesterday I was having my monthly treatment for my neuropathy. During the visit, the doctor comes in to check my progress. As we were chatting about his new location (they had just moved into a new building) he joked about moving to Florida. Then the discussion veered to taxes, on how much better the tax climate is in Florida. We joked that there was a time when Minnesotans moved to Florida just because of the weather. Now it is primarily to escape the confiscatory taxation in Minnesota.
On the way home, I started thinking again about this wealth migration issue all over again. I have been doing more reading and studying on this issue. It is not just Minnesota. It is ALL high tax states. People are leaving. And they are taking their money with them. That is why this is called wealth migration.
I found a very interesting site. Well, actually many of them, but I will quote from this one (how money walks.com). It shows every state in the union on how money has either moved into that state or out of that state. It uses a time period of 1992 - 2014 for its data. And some of the numbers are jaw dropping. Minnesota by itself has lost about $6.5 billion of adjusted gross income! Thing what that money could have done if had been left here in our economy.
If gets worse. The site also shows each county in each state on how money has flowed in or out. Ready for this one? Hennepin and Ramsey, the bluest of the blue in Minnesota are also the reddest of the red when it comes to wealth migration. Because of their confiscatory tax policies and unfriendly business climates, between the two of them they saw 2.7 billion dollars leave during the period of 1992-2014. What say you Mayor Betsy and Mayor Chris?
Here is another data point taken from a 2013 article penned by The Tax Foundation. During the period of 1999 - 2010 (and the Foundation used IRS data for this research), high taxed states of New Jersey, New York and California lost 1.2 million individual taxpayers - and they took their 97 billion dollars of personal income with them. Who gained? Texas, Arizona, Florida. The usual suspects. The states which are business and tax friendly.
One of my friends who is a bit left of center thinks it is almost criminal for people who have made money while living here to leave. They OWE it to the rest of us to just shut up and pay their taxes, no matter how high. Well that Utopian type of thinking may work well on the left side of the street, but in "realville", it does not play. In a free country, people can live where they want. Period. If Minnesota does not fix their tax issue, they will end up being the California of the north.
By the way, this is for my good friends in Wisconsin. You are not out of the woods yet. During the period of 1992-2014, Wisconsin saw $3.8 billion walk out the door to other states. Illinois, almost $42 billion gone. New York, $86 billion. California, $54 billion.
Right now our elected representatives are meeting in St. Paul to make more sausage. Make sure they all know how you feel on this issue. I know I sure have.