Potomac Fever is the blog of the Hamilton College Semester in Washington Program.
Cities aren't really great places to raise a family, and given lower tax rates across state lines, there's an obvious economic incentive to move where the tax rates are lower.Of course, that just means we should increase the national income tax, and avoid that problem entirely.
Er, I'm gonna amend that first sentence - "some people think that cities aren't really a great place to raise a family." Don't wanna knock the urban people who I'm sure enjoyed very much growing up in cities.
I think it's completely reasonable for wealthy people to move to places where they have to pay lower taxes. Poor people, on the other hand, have incentives to be in areas with strong public facilities and social spaces. But people aren't going to "go Galt" and move out of America if we create a new top marginal tax rate or raise the national income tax's marginal top level by 2%.
People may not, but businesses sure will. That's a really big problem.
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