The 2017 Republican tax legislation’s $10,000 cap on the deductibility of state and native taxes didn’t lead taxpayers in high-tax states to flee en masse to states with out an earnings tax, similar to Florida and Texas, in accordance to a Bloomberg News analysis of IRS information.
Bloomberg’s Jonathan Levin studies that that tax overhaul “had a negligible initial impact on the nation’s domestic migration patterns” and there was no SALT cap bump for Florida, Texas or Washington, which additionally has no earnings tax:
“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 net migration rate remained negative in high-tax states including New York, New Jersey and California. But as with the states at the opposite end of the tax spectrum, there was no observable shift in trend. In fact, New York’s negative net migration rate got slightly less negative.”