Tax Flight is a MYTH

Even though some opponents to raising taxes on DC’s wealthiest residents or profitable businesses claim that it could cause those residents or businesses to move to neighboring states, evidence doesn’t back them up.

Households with low incomes are more likely to move to a different state than millionaires.

And overall, only about 1.5 percent of households move across state lines every year.

People usually move because of jobs, housing costs, and family – not taxes

Research shows that by and large people don’t decide where to live based on taxes and are just as likely to move from low to high tax states as the other way around. 

Low taxes mean less money to pay for the public services that attract new residents

Tax dollars pay for public parks, reliable public transportation, and other public services that make people want to live somewhere.

Instead of catering to concerns with no basis in reality, DC’s taxes should be structured to raise the shared resources we need for every resident to thrive.

Learn more: Tax Flight Is a Myth: Higher State Taxes Bring More Revenue, Not More Migration, the Center on Budget and Policy Priorities.


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