Income taxes and the destination of movers to multistate MSAs

Coomes, Paul A.; Hoyt, William H.

doi:10.1016/j.jue.2007.07.007

Cited by 56 publications

(37 citation statements)

References 12 publications

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“…Typically, these include the cost associated with living there (taxes, commuting, etc. ), the public goods provided, and occasionally other factors, such as weather, cultural amenities, and family (Coomes and Hoyt ; Day and Winer ; Feld and Kirchgessner ). As previously stated, however, these factors do not apply to this analysis.…”

Section: Literature Reviewmentioning

confidence: 99%

“…My article examines this theory. However, there is also a subset of the literature that finds that tax policy has little to no effect on migration and residency choices (Coomes and Hoyt 2008;Day and Winer 2006;Liebig, Puhani, and Sousa-Poza 2006;Young and Varner 2011). Young and Varner (2011) offer three reasons beyond the Tiebout concerns for why this may be the case: (1) workforces are not very mobile and long commutes are undesirable (Kahneman et al 2004), (2) people do not want to give up their jobs for tax reasons (Winkelmann and Winkelmann 1998), and (3) people do not want to leave their communities (Dahl and Sorenson 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Missouri and Indiana are also considering a dramatic reduction in their reliance upon personal income taxes (Hammel 2013). effect on residency choices (Coomes and Hoyt 2008;Day and Winer 2006;Liebig, Puhani, and Sousa-Poza 2006;Young and Varner 2011). In fact, in a recent survey of the relevant literature, the authors state that "tax flight is a myth [and] higher state taxes bring more revenue, not more migration" (Tannenwald, Shure, and Johnson 2011, 1).…”

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State Income Taxes and Military Service Members' Legal Residency Choices

Afonso

2014

Contemporary Economic Policy

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Using military residency data from 1998 to 2005 across all 50 states, I find that income taxes deter legal residencies and that the effect grows as income increases. My results indicate that states with no income tax or with exemptions for military wages experience 100% and 39% more service member residencies, respectively, than states with an income tax. The influence of state tax policy increases with higher pay and tenure. My findings are in keeping with economic theory, which suggests that high income workers will migrate out of high tax areas and be replaced by low income workers. (JEL H24, H71, J61)

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

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State Income Taxes and Military Service Members' Legal Residency Choices

Afonso

2014

Contemporary Economic Policy

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“…Young and Varner (2011) employed a similar methodology to aggregate-level data examining the migratory response to the imposition of a ''millionaire surcharge'' in New Jersey and found that the policy induced little migration responsiveness among top earners. Coomes and Hoyt (2008) examined how tax policy influenced residential choices in multistate metropolitan areas and found that income tax rates played a Note: Taxes paid on tour earnings were determined by calculating an effective tax rate on event earnings outside the state (assumed to be a function of the number of tournaments, with equal earnings in each event) and then allowing a credit for these payments in the resident state up to the liability due from the resident state tax. Salary and endorsement tax payments were simply a function of the resident income tax rate.…”

Section: Taxationmentioning

confidence: 99%

Agglomeration, Tax Differentials, and the Mobility of Professional Athletes

Driessen

Sheffrin

2016

Public Finance Review

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Interstate mobility may limit states' ability to choose their desired tax policies. The forces of agglomeration, however, may allow states more leeway in setting tax rates. Moreover, mobility and agglomeration effects are not uniform for all individuals within a state and may vary significantly across different groups. We explore this heterogeneity by examining the residential location decisions of professional racecar drivers and golfers, which have similar industry characteristics but different levels of agglomeration. Consistent with our theory, we show that tax preferences are a powerful determinant of golfer residential patterns, while agglomeration mitigates much of this effect among racecar drivers. These findings highlight the need to better understand how competition and agglomeration interact when formulating tax policy.

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“…International differences in the rules governing work practices or professions, which are the focus of our study, are different in that they constitute an implicit economic barrier, rather than an explicit government intervention aimed at restricting entry. Disparate professional rules are more akin to frictions that impede the portability of social security (D'Addio and Cavalleri []) and tax differentials that encourage migration (e.g., Conway and Houtenville [1998, ], Bakija and Slemrod [], Coomes and Hoyt [], Kleven et al. []).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Regulatory Harmonization on Cross-Border Labor Migration: Evidence from the Accounting Profession

Bloomfield

Brüggemann

Christensen

et al. 2016

Journal of Accounting Research

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The paper examines whether international regulatory harmonization increases cross‐border labor migration. To study this question, we analyze European Union initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross‐border migration of accounting professionals relative to tightly matched other professionals before and after regulatory harmonization. We find that international labor migration in the accounting profession increases significantly relative to other professions. We provide evidence that this effect is due to harmonization, rather than increases in the demand for accounting services during the implementation of the rule changes. The findings illustrate that diversity in rules constitutes an economic barrier to cross‐border labor mobility and, more specifically, that accounting harmonization can have a meaningful effect on cross‐border migration.

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Income taxes and the destination of movers to multistate MSAs

Cited by 56 publications

References 12 publications

State Income Taxes and Military Service Members' Legal Residency Choices

State Income Taxes and Military Service Members' Legal Residency Choices

Agglomeration, Tax Differentials, and the Mobility of Professional Athletes

The Effect of Regulatory Harmonization on Cross-Border Labor Migration: Evidence from the Accounting Profession

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