Semantic Scholar
Open Access
2026
The Impact of State and Local Tax Deductions on Household Relocation Decisions: Evidence From the TCJA Law
Moussa Diop
Richard K. Green
Abstrak
The Tax Cuts and Jobs Act of 2017 (TCJA) had a major impact on the tax liability of highincome individuals in states with high state and local taxes. The impact arose from a newly instituted $10,000 cap on state and local tax deductions (SALT), meaning that itemizers with more than $10,000 of state and local taxes saw their effective tax liabilities rise by as much as 58 percent. If states were previously in a Tiebout equilibrium regarding local taxation and spatial allocation, this change in Federal tax policy would upset that equilibrium, inducing migration. Using a difference-indifferences framework and Internal Revenue Service data, we find that TCJA induced movement from high SALT states to low SALT states.
Penulis (2)
M
Moussa Diop
R
Richard K. Green
Akses Cepat
Informasi Jurnal
- Tahun Terbit
- 2026
- Bahasa
- en
- Sumber Database
- Semantic Scholar
- DOI
- 10.2139/ssrn.6166526
- Akses
- Open Access ✓