Illinois Lost $34.3 Billion In Gross Income Over Eight Years Due To Domestic Migration

From The Center Square:

Illinois, which has a flat state income tax, saw a cumulative decrease in adjusted gross income (AGI) between 2010 and 2018 of $34.3 billion, according to a new analysis of Internal Revenue Service data by the independent research website Wirepoints.

Illinois ranked 49th in the study comparing the 50 states’ AGI numbers to out- and in-migration numbers. Illinois reported a 9.5 percent decrease in AGI in 2018 compared to 2010, when the total AGI stood at $362.3 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

StateType of Income TaxCumulative Net Change in AGI Due to Domestic Migration 2010-2018 (in Billions)Total AGI in 2010AGI Gain / Loss Compared to 2010RankFloridaZero$95.0$467.520.3%1South CarolinaProgressive$15.2$94.116.1%2NevadaZero$10.5$66.815.7%3IdahoProgressive$4.2$29.614.2%4ArizonaProgressive$15.5$135.811.4%5MontanaProgressive$2.4$21.611.1%6ColoradoFlat$11.2$142.67.9%7North CarolinaFlat$15.8$207.87.8%8OregonProgressive$6.1$88.57.0%9WashingtonZero$11.8$190.86.2%10TennesseeZero$8.0$136.15.9%11WyomingZero$1.0$17.75.4%12DelawareProgressive$1.2$23.95.0%13TexasZero$30.7$620.65.0%14UtahFlat$2.7$58.94.6%15MaineProgressive$1.3$30.04.2%16South DakotaZero$0.6$19.83.2%17New HampshireFlat$1.3$41.43.1%18HawaiiProgressive$0.5$33.41.6%19GeorgiaProgressive$3.1$216.01.4%20AlabamaProgressive$0.8$98.90.8%21ArkansasProgressive-$0.2$56.0-0.3%22OklahomaProgressive-$0.6$79.5-0.8%23KentuckyProgressive-$1.0$86.7-1.2%24VermontProgressive-$0.2$15.7-1.3%25IndianaFlat-$3.0$143.2-2.1%26MissouriProgressive-$2.9$135.4-2.2%27MississippiProgressive-$1.2$53.3-2.2%28New MexicoProgressive-$0.9$41.4-2.2%29North DakotaProgressive-$0.4$18.6-2.3%30CaliforniaProgressive-$24.6$1,026.9-2.4%31WisconsinProgressive-$3.7$143.8-2.6%32LouisianaProgressive-$2.7$98.2-2.7%33IowaProgressive-$2.0$72.1-2.8%34MichiganFlat-$6.6$227.6-2.9%35PennsylvaniaFlat-$10.4$339.7-3.1%36VirginiaProgressive-$7.8$245.1-3.2%37MinnesotaProgressive-$4.9$152.4-3.2%38West VirginiaProgressive-$1.2$35.6-3.4%39NebraskaProgressive-$1.7$45.2-3.9%40MassachusettsFlat-$9.0$233.5-3.9%41Rhode IslandProgressive-$1.2$28.3-4.2%42OhioProgressive-$11.5$267.0-4.3%43KansasProgressive-$3.1$70.7-4.4%44MarylandProgressive-$10.1$189.3-5.3%45New JerseyProgressive-$21.5$308.5-7.0%46ConnecticutProgressive-$12.3$145.6-8.4%47New YorkProgressive-$54.1$628.4-8.6%48IllinoisFlat-$34.3$362.3-9.5%49AlaskaZero-$2.3$21.5-10.9%50

Source: Wirepoints.org

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