8/06/2014

If you want to get the wealthiest billionaires to live in your state, get rid of the state income tax

The states without an income tax are


  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming


  • Apparently, Tennessee and New Hampshire are not really zero income tax states as they impose significant taxes on interest and dividend income (6% and 5%, respectively).  There is a list of the wealthiest person in each state available here.

    I ran two regressions: one with the wealthiest person in the state on a dummy variable for them not having an income tax and then the same thing for just the continental US.


    Both estimates show the same thing.  Not having an income tax raises the wealth of the wealthiest person by $16.8 billion and not having an income tax in the continental states raises the wealth of the wealthiest person by $21.3 billion.

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