News

Economy & Business

Conn. Lost $2.6 Billion in 2016 Revenue Due to High Earners Leaving State

The Connecticut State Capitol in Hartford, Conn., August 17, 2017. (Hilary Russ/Reuters )

The state of Connecticut forfeited $2.6 billion in government revenue in 2016 as residents, particularly high-earners, fled the state for a lower cost of living, according to a recent study by the Cato Institute.

The study, released ahead of a tight gubernatorial election that has focused heavily on the state’s high tax burden, found that Connecticut lost 12,254 tax filers over the course of 2016, the sixth highest lost in the country over that period.

“Strictly speaking, AGI (adjusted gross income) does not migrate; people do,” wrote study author and Cato director of tax-policy studies Chris Edwards. “Nonetheless, saying income is ‘migrating’ is rough shorthand for saying that the earning power of households is moving between states.”

The net effect of out-migration was exacerbated by the income gap between those leaving and those arriving in the state, according to the study: New residents earned only 55 percent of their departing counterparts’ salaries on average. The migration rate 1.4 percent for residents earning between $50,000 and $200,000 and 2.1 percent percent for those earning over $200,000. The latter group left at the highest rate, and the loss of just five ultra-wealthy individuals to Florida cost the state government more than $68 billion in tax revenue.

Overall, the study found that states with relatively high income-tax rates tended to lose residents while their low-tax counterparts gained residents and the resulting revenue. In fact, 24 out of 25 states with a tax burden exceeding 8.5 percent suffered a net loss of residents.

The top individual income-tax rate in Connecticut is 6.99 percent and has been raised by state lawmakers on three separate occasions since 2008. The state currently ranks 46th in economic growth, 46th in road quality, 47th in state-pension funding, 47th in population growth, and 50th in personal-income growth since 2007.

Send a tip to the news team at NR.

Most Popular

U.S.

The Lockdowns Are Now a Scandal

A boy in my neighborhood committed suicide a few weeks ago. It’s possible that the teen’s preexisting problems were exacerbated by the seclusion, tediousness, and helplessness of a national lockdown. Maybe not. I didn’t really know him. I do know that locals were forced to pay respects by sitting parked ... Read More
U.S.

The Lockdowns Are Now a Scandal

A boy in my neighborhood committed suicide a few weeks ago. It’s possible that the teen’s preexisting problems were exacerbated by the seclusion, tediousness, and helplessness of a national lockdown. Maybe not. I didn’t really know him. I do know that locals were forced to pay respects by sitting parked ... Read More
Elections

Good Riddance, Valerie Plame

In a week full of bad news, the defeat of Valerie Plame in a New Mexico Democratic congressional primary is easily overlooked. Had Plame won, she would have had a good chance of winning the seat, as the 3rd District is pretty heavily Democratic-leaning, scoring a D+8 in the Cook Partisan Voting Index. In ... Read More
Elections

Good Riddance, Valerie Plame

In a week full of bad news, the defeat of Valerie Plame in a New Mexico Democratic congressional primary is easily overlooked. Had Plame won, she would have had a good chance of winning the seat, as the 3rd District is pretty heavily Democratic-leaning, scoring a D+8 in the Cook Partisan Voting Index. In ... Read More
Science & Tech

About That Scary Hydroxychloroquine Study

Remember that scary hydroxychloroquine study in The Lancet and New England Journal of Medicine that everyone in the media was writing about a few weeks ago? It turns out that the underlying data were likely fake: A Guardian investigation can reveal the US-based company Surgisphere, whose handful of employees ... Read More
Science & Tech

About That Scary Hydroxychloroquine Study

Remember that scary hydroxychloroquine study in The Lancet and New England Journal of Medicine that everyone in the media was writing about a few weeks ago? It turns out that the underlying data were likely fake: A Guardian investigation can reveal the US-based company Surgisphere, whose handful of employees ... Read More

Biden as Paradox

It is now conventional punditry that should Joe Biden win in November, his vice president, in 1944-style, will sooner rather than later become president. Biden, to reboot and secure the identity-politics base, thought he had to discriminate by sex and race in advance by selecting his vice president. But given ... Read More

Biden as Paradox

It is now conventional punditry that should Joe Biden win in November, his vice president, in 1944-style, will sooner rather than later become president. Biden, to reboot and secure the identity-politics base, thought he had to discriminate by sex and race in advance by selecting his vice president. But given ... Read More
World

Welcome Home, Hong Kong

London doesn’t have the power to push the corrupt little junta in Beijing into being halfway decent to the people of Hong Kong, but Boris Johnson has a bold solution for almost half of those people: Come to the United Kingdom. Hong Kong is a former British territory, and about 3 million of its 7.5 million ... Read More
World

Welcome Home, Hong Kong

London doesn’t have the power to push the corrupt little junta in Beijing into being halfway decent to the people of Hong Kong, but Boris Johnson has a bold solution for almost half of those people: Come to the United Kingdom. Hong Kong is a former British territory, and about 3 million of its 7.5 million ... Read More