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Low-tax states, especially Florida, are getting wealthier as a result.
BofA says 'tax migration' is far from a settled area but evidence of it is adding up.
Tax-induced migration was a key part of the narrative of 2020, but the story actually began long before that.
Lower-tax states are continuing to get richer thanks to a steady influx of new residents from higher-tax states, per a recent Bank of America Research note, which looked at recently released IRS data for tax returns from 2019, reflecting 2018 earnings.
The data showed that net gains in adjusted gross income (AGI) for lower-tax states were higher than those in higher-tax states: the latter saw $111 billion in AGI in 2018, while the former saw nearly $145 billion. The net AGI gain of lower-tax states also increased from 2017 to 2018 by $2 billion, to $34 billion, the team led by Ian Rogow wrote.