Texas, which has no state income tax, saw a cumulative increase in adjusted gross income (AGI) between 2010 and 2018 of $30.7 billion, according to a new analysis of Internal Revenue Service data by the independent research website Wirepoints.
Texas ranked 14th in the study comparing the 50 states’ AGI numbers to out- and in-migration numbers. Texas reported a 5 percent increase in AGI in 2018 compared to 2010, when the total AGI stood at $620.6 billion.
Overall, the 17 states with either no income tax or a flat income tax attracted a net 1.9 million residents and $120 billion in AGI from those states with progressive income tax systems during that time period, Wirepoints reported
The wealth accumulations by the 17 states (Kentucky not included, since it didn’t become a flat-tax state until two years ago), are even more dramatic because progressive states outnumber them by nearly two-to-one, according to the analysis.
The study, however, did recognize that income tax systems are not the only reason people move from one state to another. Other reasons involve employment, housing, weather and corruption, Wirepoints reported.
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Cumulative Gross Income Changes vs. Migration Trends
| State | Type of Income Tax | Cumulative Net Change in AGI Due to Domestic Migration 2010-2018 (in Billions) | Total AGI in 2010 | AGI Gain / Loss Compared to 2010 | Rank |
| Florida | Zero | $95.0 | $467.5 | 20.3% | 1 |
| South Carolina | Progressive | $15.2 | $94.1 | 16.1% | 2 |
| Nevada | Zero | $10.5 | $66.8 | 15.7% | 3 |
| Idaho | Progressive | $4.2 | $29.6 | 14.2% | 4 |
| Arizona | Progressive | $15.5 | $135.8 | 11.4% | 5 |
| Montana | Progressive | $2.4 | $21.6 | 11.1% | 6 |
| Colorado | Flat | $11.2 | $142.6 | 7.9% | 7 |
| North Carolina | Flat | $15.8 | $207.8 | 7.8% | 8 |
| Oregon | Progressive | $6.1 | $88.5 | 7.0% | 9 |
| Washington | Zero | $11.8 | $190.8 | 6.2% | 10 |
| Tennessee | Zero | $8.0 | $136.1 | 5.9% | 11 |
| Wyoming | Zero | $1.0 | $17.7 | 5.4% | 12 |
| Delaware | Progressive | $1.2 | $23.9 | 5.0% | 13 |
| Texas | Zero | $30.7 | $620.6 | 5.0% | 14 |
| Utah | Flat | $2.7 | $58.9 | 4.6% | 15 |
| Maine | Progressive | $1.3 | $30.0 | 4.2% | 16 |
| South Dakota | Zero | $0.6 | $19.8 | 3.2% | 17 |
| New Hampshire | Flat | $1.3 | $41.4 | 3.1% | 18 |
| Hawaii | Progressive | $0.5 | $33.4 | 1.6% | 19 |
| Georgia | Progressive | $3.1 | $216.0 | 1.4% | 20 |
| Alabama | Progressive | $0.8 | $98.9 | 0.8% | 21 |
| Arkansas | Progressive | -$0.2 | $56.0 | -0.3% | 22 |
| Oklahoma | Progressive | -$0.6 | $79.5 | -0.8% | 23 |
| Kentucky | Progressive | -$1.0 | $86.7 | -1.2% | 24 |
| Vermont | Progressive | -$0.2 | $15.7 | -1.3% | 25 |
| Indiana | Flat | -$3.0 | $143.2 | -2.1% | 26 |
| Missouri | Progressive | -$2.9 | $135.4 | -2.2% | 27 |
| Mississippi | Progressive | -$1.2 | $53.3 | -2.2% | 28 |
| New Mexico | Progressive | -$0.9 | $41.4 | -2.2% | 29 |
| North Dakota | Progressive | -$0.4 | $18.6 | -2.3% | 30 |
| California | Progressive | -$24.6 | $1,026.9 | -2.4% | 31 |
| Wisconsin | Progressive | -$3.7 | $143.8 | -2.6% | 32 |
| Louisiana | Progressive | -$2.7 | $98.2 | -2.7% | 33 |
| Iowa | Progressive | -$2.0 | $72.1 | -2.8% | 34 |
| Michigan | Flat | -$6.6 | $227.6 | -2.9% | 35 |
| Pennsylvania | Flat | -$10.4 | $339.7 | -3.1% | 36 |
| Virginia | Progressive | -$7.8 | $245.1 | -3.2% | 37 |
| Minnesota | Progressive | -$4.9 | $152.4 | -3.2% | 38 |
| West Virginia | Progressive | -$1.2 | $35.6 | -3.4% | 39 |
| Nebraska | Progressive | -$1.7 | $45.2 | -3.9% | 40 |
| Massachusetts | Flat | -$9.0 | $233.5 | -3.9% | 41 |
| Rhode Island | Progressive | -$1.2 | $28.3 | -4.2% | 42 |
| Ohio | Progressive | -$11.5 | $267.0 | -4.3% | 43 |
| Kansas | Progressive | -$3.1 | $70.7 | -4.4% | 44 |
| Maryland | Progressive | -$10.1 | $189.3 | -5.3% | 45 |
| New Jersey | Progressive | -$21.5 | $308.5 | -7.0% | 46 |
| Connecticut | Progressive | -$12.3 | $145.6 | -8.4% | 47 |
| New York | Progressive | -$54.1 | $628.4 | -8.6% | 48 |
| Illinois | Flat | -$34.3 | $362.3 | -9.5% | 49 |
| Alaska | Zero | -$2.3 | $21.5 | -10.9% | 50 |
Source: Wirepoints.org
This article was first published by The Center Square.
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