Connecticut slows the flow of AGI and taxpayer returns in 2020

The IRS’ newly released interstate Adjusted Gross Income migration data show how much wealth states lost or gained between 2019 and 2020. The latest available data is for 2020.

Net AGI migration in 2020 is calculated by subtracting AGI inflow from AGI outflow. The change between 2019 and 2020 in net AGI migration takes an individual state’s net AGI migration in 2020 and subtracts it from net AGI in 2019.

When assessing the states whose wealth increased the most between 2019 and 2020 through migration, most follow previous AGI migration trends: Florida, Tennessee, Nevada and Texas are all among the top states for net AGI increase in 2020. Most of these states’ performance has been analyzed at Truth In Accounting: Top and Bottom Net AGI 2020 Analysis.

Among the states that lost the most in 2019, Connecticut improved significantly in 2020, unlike its neighbor New York. The state’s net AGI change in income migration between 2019 and 2020 is impressive. The state’s net AGI migration improved by nearly $1.4 billion, from around negative $1.6 billion to negative $302 million, in 2020. New York, however, went from losing almost $9 billion in 2019, to losing nearly $20 billion in 2020.

In addition, Connecticut lost only one third the number of tax returns in 2020 as it lost in 2019, going from nearly 9000 to a just over 3000 tax return decrease. In contrast, New York continued to lose a significant number of taxpayers, going from 73,000 lost in 2019 to over 129,000 in 2020.

Both Connecticut (50th) and New York (41st) ranked in the bottom ten for fiscal management according to TIA’s 2021 Financial State of the States Report. Clearly Connecticut is turning things around in terms of AGI migration while New York is stuck in a downward spiral.

Data and graphs in this report can be generated by visiting Data-Z.org

Karen Danford is an Editor and Project Director at Truth In Accounting