Do taxes affect population migration patterns? The data provided by Atlas World Group seems to indicate that there is a positive correlation between taxes and where people move to.
Atlas World Group annually publishes Atlas Migration Patterns, a measure of interstate and cross-border shipments of household goods in order to track shifts in population bases. The migration patterns are based on 104, 984 interstate household goods moves from January 1, 2005 through December 31, 2005.
Included in the inbound column are Alaska, New Mexico, Colorado, Idaho, Montana, Texas, Oregon, North Dakota, Tennessee, North Carolina, New Hampshire, and Vermont. Of these 12 inbound states; eight out of 12 states are in the lowest 25 states in terms of taxes as a percentage of income.
The outbound distinction went to Minnesota, Michigan, Indiana, Ohio, New York, Maine, Massachusetts, New Jersey, Louisiana, and Mississippi. Of these 10 outbound states; seven out of 10 states are in the highest 25 states in terms of taxes as a percentage of income.
Click here to see the state rankings.