The Great Tax Migration

Manhattan Insights

During the Covid pandemic, everyone from Elon Musk to Joe Rogan to the Goldman Sachs asset-management division packed up their headquarters and moved to Texas or Florida, states that famously have zero income tax. Are these high-profile cases outliers, or do they represent an emerging trend in our newly remote world? How can policymakers position their states to succeed in an era of interstate tax competition?

Joshua Rauh is a professor of finance at the Stanford Graduate School of Business, a senior fellow at the Hoover Institution, and a research associate at the National Bureau of Economic Research. A specialist in corporate and public sector finance, he joins us to discuss the implications of tax migration across state lines.