Haslam: GOP tax bill will bring more immigration to TN from other states

Gov. Bill Haslam says more people from states such as New York,  New Jersey and California are likely to move to Tennessee with enactment of a Republican federal tax package that eliminates current deductions for payment of state and local taxes, reports the Murfreesboro Daily News Journal.

As Haslam explains it, those living in states with higher tax rates currently see a greater federal tax deduction. Residents in Tennessee, a low-tax state, don’t benefit as much from the state and local tax deduction.

“That changes now,” Haslam said, speaking Monday at Nissan’s Smyrna plant. “A lot of people who live in states with income tax of 10 or 12 percent start going, ‘Huh, well, only having to pay half is not such a bad deal, but if I’m having to pay all of it, maybe I’d be better off in Tennessee.’ We think it actually will encourage both investment growth and population growth in Tennessee.”

William Fox, an economist at University of Tennessee Knoxville, said research shows  tax rates can affect where people leave, but the impact is small. And there are several caveats to keep in mind with that calculation. Taxes pay for services, so when changing residences, an individual may also be giving up tax-funded services they enjoy.

“There is a small impact of taxes on where people live,” Fox said. “With the elimination of the deductibility, you make it more expensive to live in high-tax states.”

Another point to keep in mind, Fox said, is that the elimination of state and local tax deductions only affects those who itemize tax returns. Thirty percent of taxpayers itemized deductions in 2014, according to the Tax Policy Center. For those individuals, ending the state and local tax deduction would make Tennessee more attractive, he said.

4 Responses to Haslam: GOP tax bill will bring more immigration to TN from other states

  • Lee Mills says:

    The problem is, they bring their New York values here with them. See Florida and Colorado as an example. Many red states have become purple.

  • John G. Stewart says:

    At least purple is a step in the right direction.

    • Stuart I. Anderson says:

      Thankfully, it’s not a step that Tennessee has taken as born and bred northerners like me who regard ourselves as refugees from the nightmare of liberal government have become the backbone of the Republican Party of Tennessee and outspoken conservatives within that party. As a result the moribund Tennessee Democratic Party is now relegated to two isolated enclaves and has been forced to resuscitate a 74 year-old retiree in order to have at least a credible candidate for the U.S. Senate.

  • Waymon Blevins says:

    I support some views of the GOP, but these views are from the Lord’s Words (The Bible). I don’t support queers or gays rights and neither does Christ. I believe in protection of America that means the import of Muslims, Mexicans, Russians or other groups of people to impose their views on the American born and raised. The things about the GOP is they have linked themselves to the views of the Christians but inward they don’t care for the views of the Bible and neither do the following the teaching of Christ. The Leaders of the GOP are liars, greedy lying bastards that lies to Christians that is gullible to believe their lies. But as Christ states they are inwardly lying wolves, they are greedy, self centered with no compassion for the poor or needy. While they lie to us and blind their true intend Christ sees their intent and will destroy them at a later time. It is sad that Tennessee is blessed with so many of these leaders. Starting with our Governor, our Senators and our Congressmen and woman. If you are working person being a Nurse, Teacher, Electrician, Carpenter,Policeman, Firefighter or a Labor, you are paying the taxes for the Rich and Wealthy as you struggle to feed your family and they are laughing at you as they set on their millions of dollars. They vacation in exzotive places while you the workers struggle to pay your bills as you work for peanuts. There is a better way of life don’t vote for the GOP or the Democrat. We need a leaders with a define agendia that wants honest and fair taxes for all with fair rates for insurances and fair a honest wages. The GOP and the Democrats leaders are wealthy and they use their power to vote the ways that will influence their Wealth from Large Insurance Companies and other business. None of these Senators or Congressman should receive continuous payment for the time they are not serving in the Senate or Congress. Greed is destroying America and it started with the GOP. History doesn’t lie do the research and it will show you as it has showed me. America will be destroyed if he continue as we are going. It must Stop.

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