Tax-Cutting Governors Experience Growth: Jonathan Williams and Joshua Meyer in Real Clear Policy
Americans tend to vote with their feet. Moving from one state to the next depends on which state offers them the best opportunity to thrive.
ALEC President & Chief Economist Jonathan William and ALEC Tax & Fiscal Policy Task Force Director Joshua Meyer recently co-authored a Real Clear Policy op-ed analyzing the latest Census data on domestic migration. Their piece highlights how states with low taxes and pro-business policies are attracting record numbers of new residents, while high-tax states continue to experience significant outmigration.
Americans tend to vote with their feet. Moving from one state to the next depends on which state offers them the best opportunity to thrive. Tax structures, regulations, and business climates – all handed down by their local elected officials – directly impact their decision-making process. After the US Census Bureau released its latest net domestic migration report last month, it’s become clear that elected officials from the low tax states made the right call.
Texas led the nation with the highest net in-migration from July 2023 to July 2024, gaining over 85,000 people. It was followed by North Carolina, South Carolina, Florida, and Tennessee. Together these states added nearly 350,000 new residents. What do they have in common? Low taxes, fewer burdensome regulations, and policies that foster economic opportunity. Those attributes attract individuals and businesses seeking a free enterprise environment where economic opportunity may thrive.
In stark contrast, states with policies that stifle competition and impose high costs on businesses continue to lose residents. For the fourth consecutive year, California experienced the largest net outflow, with nearly a quarter of a million people leaving during the 12-month period. In the last five years, the Golden State has lost more than 1.4 million people on net. That loss represents not only a dwindling population but a profound economic loss. Taxpayers, businesses, and jobs leaving the state compound the fiscal difficulties California is already juggling. In 2024, this contributed to a $47 billion budget deficit, forcing policymakers to deplete their rainy-day fund and raise taxes.
California’s struggles are not unique. Other high tax states like New York, Illinois, New Jersey, and Massachusetts are also experiencing significant outmigration. Combined, these five states lost nearly 500,000 residents on net according to the Census Bureau report. The common thread is an overreliance on high taxes, excessive regulation, and policies that discourage business growth. The irony is that the promise of fairness and security often produces the conditions that drive away those the states hope to serve.