United Van Lines recently released its 2007 survey of migration patterns from state-to-state across the country. It shows that, while Wisconsin is not yet listed as a 'high outbound' state, it is nearing that designation with 54.6% of moves being out of the state rather than into the state. 55% is the trigger point to move into the high outbound category. This trend has been evident since United started this survey in 1977.
Given our winter so far this year, we might blame some of these outbound moves on that. North Carolina was the highest rated inbound state, followed by Alabama, South Carolina, West Virginia and Tennessee.
Great Lakes states were in the high outbound category with Michigan on top, and North Dakota, New Jersey, Indiana, Illinois, Pennsylvania and Ohio included.
The Wall Street Journal carried this a step further in a morning Editorial by establishing a significant link to the outbound states. Each outbound state is a high tax state. And, the eight states without an income tax are all inbound states.
The Dakotas are an excellent example of this movement. North Dakota ranked second worst in outbound migration in 2007. South Dakota ranked in the top 10 inbound states. North Dakota has an income tax, and South Dakota does not.
Winter isn't the culprit there, and it isn't the culprit in the rest of the Great Lakes states.
Our politicians need to wake up and recognize that rising tax rates drive people away. Just as the increase in tobacco taxes will ultimately result in far lower tobacco tax collections, the same holds true for taxes in general. When tax rates are decreased, actual tax collection increases over time. Similarly, when tax rates are increased, actual tax collection goes down over time.
One sure way to reduce tax collection is to drive people away from our state. And it seems we're in that mode based on United's study over the years.
