It is no secret that business and jobs are flowing to Texas from California but that is not the only state that is benefitting with new jobs as a response to higher taxes in once was called the Golden State.
According to the Goldwater Institute, Arizona saw a net influx of about $2.89 billion in income since the start of the recession from 2007 through the end of 2010. Illinois and Michigan have also benefits from businesses fleeing states with high taxes..
However during the same time, out-migration from Arizona went to Texas, a state that, along with Nevada and Colorado, grabbed more income from California from businesses looking for states that have no income tax or a flat tax.
Any state that is looking to take advantage of businesses that want to migrate will have to compete with states like Texas or other states by eliminating the income tax. Until they do, the jobs will continue to flow to those that that dangle the financial advantages of no or low taxes. The reality is that jobs and money migrate to the states that offer them the best deal tax-wise.
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http://goldwaterinstitute.org/blog/no-surprise-jobs-and-money-go-where-t...
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