Limiting SALT Cap Deduction Did Not Lead to Exodus

Bloomberg: “The IRS data is finally in, and it didn’t happen. In the first year after the cap was put in place, zero-wage-tax states netted about $1.24 in new earnings from migrants for every $100 already earned there — slightly less than the net migration rates in the previous three years. Florida, the top destination among zero-tax states, netted $2.65, also a drop from the previous years’ rates. The trend remains broadly positive, but there was no SALT-cap bump.”

“Lawmakers from high-tax states want the cap nixed or pushed higher and are angling to win such a tweak as part of any package of forthcoming tax hikes… The statistics reinforce existing research that shows high-earning Americans are relatively resistant to leaving the markets where they first became successful.”