Jobs, not taxes, key to family migration says UMASS study

A new University of Massachusetts study shows that jobs are a much more important factor than taxes in families’ decisions to move across state borders.

The study by the Political Economy Research Institute at UMASS is entitled the `Impact of Taxes on Migration in New England.’

The report by economist Jeffrey Thompson states that employment and family concerns, rather than taxes, provide the strongest impetus for families moving from one state to another.

“Regardless of how they feel about the tax itself, people value the public services paid for with those taxes,’’ says Thompson. “More important for the issue of migration, though, is the job opportunities that the state government creates by spending that tax revenue.’’

Thompson used IRS migration data and other research to come to his conclusions. He states that just 3 percent of Americans move across state lines in a given year for any reason and that 57 percent of adults have never lived outside the state in which they were born.

“Clearly a very large majority of Americans does not move for any reason, taxes or otherwise,’’ states Thompson. “The results show that taxes have no measurable impact on people’s decisions to leave a state.’’

“That taxes are not a big driver of migration may shock some politicians, but it is not a surprise to researchers on this issue,’’ states Thompson. “People concerned about attracting people to a state and keeping them there should really focus on creating jobs, and may even be willing to raise taxes to do it. People are not going to leave a state because of some modest change in taxes but they will leave if public safety deteriorates and if there are no jobs.’’