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Newsweek
29-05-2025
- Business
- Newsweek
Map Shows Which States Lost Most Tax Money After Recent Population Shifts
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Americans moving out of places like California and New York are costing those states billions of dollars in taxpayer funds, according to data analysis released by the National Taxpayers Union Foundation (NTUF) this week. Why It Matters States bleeding population face myriad challenges, including the loss of taxpayer funds that could be used to pay for critical services for residents. It also has political ramifications, including the loss of seats in the House of Representatives. The next round of redistricting could have major implications for political representation, with larger red states poised to gain House seats. Major Democratic states, meanwhile, are on track to lose seats if migration patterns do not shift. The report noted that population shifts are largely among high-income residents, underscoring the loss of taxpayer funds to other residents in those states. A house for sale in Los Angeles. A house for sale in Los Angeles. Ringo Chiu via AP What To Know The new data analysis from the NTUF, a conservative-leaning economic organization, revealed estimates for how each state's population shifts are affecting tax revenue in 2025. Florida gained the most new residents to internal migration, with more than 1.5 million Americans moving into the state from 2011 to 2021, which is resulting in $4.1 billion in additional revenue in 2025. Texas followed, gaining more than 1.2 million new residents and an additional $914 million in additional revenue, according to the data analysis. North Carolina, Arizona and South Carolina were among the other states that have seen the highest increase in tax revenue as a result of attracting new residents from other states. On the other end of the spectrum was California, which lost 1.6 million residents from 2011 to 2021, resulting in a $4.5 billion revenue loss. New York followed, seeing a $3.8 billion revenue lost in 2025 after losing 1.7 million residents during that time frame, according to the report. Illinois, New Jersey and Massachusetts were other states that have lost at least $500 million in tax revenue as a result of losing residents. Estimated revenue changes are "driven primarily by the movement of high-income earners, who tend to pay far more in taxes than they receive back in government service," according to the report. What People Are Saying Andrew Wilford, director of NTUF's Interstate Commerce Initiative and author of the report, in a press release: "While tax rates are not the only reason taxpayers move to different states, it is hard to deny that they play a substantial role in where taxpayers decide to live. When looking at broader trends, the clear pattern is that taxpayers move from states with higher tax burdens towards states with lower ones. Tax rates explain this trend better than any other explanation put forward, from weather to the cost of housing." William Frey, a demographer and senior fellow at the Brookings Institution, told Newsweek in December: "When it comes to deciding when to move, it's sort of like the last election. It's a pocketbook thing. When it's too expensive to live somewhere, you're going to look where there are job opportunities." What Happens Next Whether these trends hold over the coming years will impact redistricting and state budgeting. If it holds, the impact could be felt in next decade's presidential elections.
Yahoo
21-05-2025
- Business
- Yahoo
Utah taxpayers may take a hit if 2017 cuts expire
SALT LAKE CITY (ABC4) — A new report shows that Utah taxpayers could be in for a major hit by the end of 2025, unless Congress passes President Trump's 'The One, Big, Beautiful Bill'. If Congress fails to extend the , which is under the bill, Utah will face an average tax increase of $3,166 per filer, per the from the (NTUF). President Trump originally signed the law during his first term. Along the Wasatch Front, federal income tax increases could range anywhere from $2000 to $4000, depending on salary, deduction elections, dependents, housing, and multiple other factors, Billy Hosterman, President of the Utah Taxpayers Association, told READ ALSO: Here's what the Utah legislature did with tax cuts in 2025 On Tuesday, President Trump pushed the House of Representatives to pass the 'One, Big, Beautiful Bill' that Republicans claim delivers permanent tax cuts and bigger paychecks, along with no tax on tips or overtime, and provides historic tax relief to Social Security recipients. According to , the permanent tax cuts outlined in the bill would net 'an extra $5000 in Americans' pockets with a double-digit decrease to their tax bills. Americans earning between $30,000 and $80,000 will pay around 15% less in taxes.' Nonpartisan scorers and think tanks estimate that it would cost trillions of dollars over the next decade. Conservatives are insisting on quicker, steeper cuts to federal programs to offset the costs of the trillions of dollars in lost tax revenue. At the same time, a core group of lawmakers from New York and other high-tax states want bigger tax breaks for their voters back home. There's also bipartisan concern about what the cuts would mean for federal health and nutrition programs. The current bill includes reforms to Medicaid which could see millions of Americans lose coverage over the next 9 years. Currently, some members of Congress are from $10,000 to as high as $80,000 for married couples. According to the NTUF analysis, Utah taxpayers would receive less than 1% of the total benefit of raising the state and local tax (SALT) deduction cap. SALT Caucus, GOP leaders emerge from late-night meeting without crucial deal 'It's rewarding to states that have high taxes, so then they could be written off on the federal level, whereas Utah is a low tax state relative to others, which is why it's not beneficial to us,' Hosterman told Regardless, Hosterman said 'it will be an increase for us all if something isn't done.' Hogle Zoo is aglow with giant lanterns and one wild night Disneyland at 70: The happiest celebration you cannot miss BestReviews Epic Deals: Budget beauty finds that actually work Discover what makes Soldier Hollow Classic the world's most elite sheepdog show and why you should go Johnson, SALT Republicans zero in on critical agreement Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
19-05-2025
- Business
- Yahoo
Ending 2017 tax cuts hurts Mississippians: report
JACKSON, Miss. (WJTV) – With recent federal decisions related to spending impacting Mississippi, inaction on temporary tax cuts could result in Mississippians paying more taxes on average. Congress is currently mulling over a budget related to federal spending and tax cuts. How the final piece of legislation will look is uncertain; however, the impact of not renewing one part of the legislation is clear. The 2017 Tax Cuts and Jobs Act (TCJA) is set to expire this year. The National Taxpayers Union Foundation (NTUF) reported that the TCJA expiring would cost Mississippi's 1.25 million tax filers $1,570 on average. According to Investopedia, the majority of benefits related to TCJA went to wealthy Americans and corporations. However, most of the costs associated with not renewing the tax bill would affect the middle class. Roughly seven in 10 taxpayers in the 40th-60th percentile of income earners would pay more in taxes nationally. MDOT faces shutdown risk amid budget delays In contrast, less than 10 percent of the country's highest earners would pay more taxes if TCJA expires. Additionally, tax cuts passed for investors on the stock market remain permanent unless Congress explicitly decides to roll them back. Proposed tax deduction increases related to state and local tax deductions (SALT) would likely not have a significant impact in Mississippi compared to other states. According to NTUF, the amount that Mississippians have to gain from SALT deductions being increased to $25,000 only makes up 0.1% of savings among all taxpayers. However, NTUF data indicates that Mississippians would still be able to claim at least $100 million in savings. Notwithstanding any tax savings that Congressional leaders approve, state leaders recently enacted legislation to do the same. In March, Mississippi passed legislation to gradually eliminate the state income tax. One of the bill's provisions also made significant changes to the state's employee retirement system. Like Congress, state leaders face roadblocks in coming to a consensus on a budget. Issues related to retirement system changes and other problems led the Mississippi Legislature to not pass a budget for the next fiscal year by the end of the 2025 legislative session. Failure to do so would result in a partial government shutdown, a fear that some state agencies are already taking seriously. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Forbes
05-05-2025
- Business
- Forbes
These States Will Be Hit Hardest If The TCJA Expires
HIALEAH, FL - APRIL 16: U.S. President Donald Trump speaks during a roundtable discussion about the ... More Republican $1.5 trillion tax cut package he recently signed into law on April 16, 2018 in Hialeah, Florida. Trump was joined by local business owners as well as Sen. Marco Rubio (R-FL), Treasury Secretary Steven Mnuchin, Labor Secretary Alex Acosta. (Photo by) Several pieces of the 2017 Tax Cuts and Jobs Act (TCJA), better known as the Trump tax cuts, expire at the end of the year. Congress is currently working on a reconciliation bill with the goal of extending many of the expiring provisions, but disagreements between the House and Senate Republicans could derail the whole thing. A new report from the National Taxpayers Union Foundation shows how failing to renew key pieces of the TCJA would lead to higher taxes in every state. If Congress does not act by the end of the year, the federal standard deduction will be cut in half, the child tax credit will decrease, individual income tax rates will increase, the federal estate tax threshold will fall, and pro-growth business tax reforms such as accelerated expensing for certain investments will be eliminated. As the NTUF report notes, these changes would increase taxes by $500 billion per year. This tax increase would reduce GDP by 1.1% and total wages by 0.5% over 10 years, or a $321 billion decline in GDP and a roughly $53 billion decrease in total wages. Taxpayers in every state will feel the impact of these changes. The average filer in Massachusetts will face a tax increase of $4,848. In Washington, the average filer will face a tax increase of $4,567, while in Wyoming, the average filer will face a tax increase of $4,493. Tax filers in West Virginia will experience the smallest increase, but even there the average filer will pay $1,423 more in taxes. The expiration of the TCJA provisions will also impact the amount of state taxes people pay since state tax codes are linked to the federal tax code in various ways. NTUF reports that Colorado, Connecticut, Maryland, Montana, and New York will be hit hardest by the combined impact of these state and federal changes. Let us take a closer look at Colorado. Like 23 other states, Colorado's tax code automatically follows the federal tax code's definitions, calculations, and rules. The TCJA eliminated several deductions and exemptions that simplified the federal tax code and expanded the tax base. Its expiration will undo these changes at both the federal level and in states such as Colorado that follow the federal tax code. For example, the decrease in the federal standard deduction will also decrease the state standard deduction. This change, combined with some others, will force many Colorado taxpayers to use a broader definition of income when calculating their tax liability, which will increase their taxes. The NTUF report explains how Colorado lawmakers and others in the same position could reduce the harm of the TCJA's expiration by establishing their state's standard deduction to be either the larger of federal law or the inflation-adjusted amount from this year. The TCJA also reformed the state and local tax deduction, or SALT deduction. It puts a $10,000 cap on the amount of state and local property taxes and either income or sales taxes that tax filers who itemize can deduct from their taxable income. The cap is not adjusted for inflation so it will shrink in real terms over time, making the deduction less valuable. Taxpayers in high-tax states, such as New York, California, and New Jersey, are impacted the most by the TCJA's SALT cap since the SALT deduction partially offsets the burden of state and local taxes. This subsidy makes taxpayers more willing to support higher state and local taxes. It also encourages government provision of services like trash collection since the taxes used to fund those services can be deducted while payments to private providers cannot. Voters are pressuring elected officials from high-tax states to eliminate or at least raise the SALT cap. As the NTUF report notes, residents of California and New York alone would receive 51% of the benefit of lifting the cap from $10,000 to $25,000 (see chart below). It makes sense that folks from those states want to lift the cap, but doing so would shrink the tax base and make the tax code more complicated. A simpler and more pro-growth way to provide tax relief is to further lower income tax rates for everybody. Tax benefit of easing SALT cap Another important change in the TCJA was full expensing for short-lived capital assets, such as tools and equipment. Full expensing allows business to fully deduct the cost of certain investments the year they are made, rather than prorated over the life of the investment. Full expensing encourages investment relative to prorated deductions because the latter lose value over time due to inflation and the opportunity cost of money. Since investment in new tools, equipment, and technologies make workers more productive, full expensing boosts wages and GDP. Full expensing at 100% of the cost was only allowed from 2018 through 2022. Since then, the percentage has been phasing down by 20 percentage points per year. In 2027 expensing will revert to the pre-TCJA depreciation rules unless Congress acts. According to the NTUF report, sixteen states, including Alabama, Tennessee, and Utah, link their expensing rules to the federal rules, which means they will also revert to the pre-TCJA rules in 2027 (see map below). Businesses in those states will be hit with a double whammy that will result in less investment and slower economic growth. Expensing laws by state While states do not control Congress, they can disconnect from federal expensing rules to ensure their tax codes do not unnecessarily discourage investment. Two states, Mississippi and Oklahoma, already did this. This ensures businesses in those states will get the benefit of full expensing at the state level, regardless of what Congress does. More states should follow suit. Over the next few months, the future of federal tax policy will become clearer. Congress has an opportunity to build on the TCJA by further simplifying the tax code and making pro-growth provisions such as full expensing and lower income tax rates permanent. But states do not have to wait around for Congress to provide tax relief. They can move forward with their own pro-growth reforms to mitigate any damage Congress may cause.
Express Tribune
02-05-2025
- Politics
- Express Tribune
Clarion call for end to capitalist exploitation
Participants of the rally pass through Zaibunnisa Street, carrying banners and flags demanding a just and fair homeland. PHOTO: JALAL QURESHI/EXPRESS On the occasion of Labour Day, National Trade Union Federation Pakistan (NTUF) and the Home-Based Women Workers Federation (HBWWF) led a rally on Thursday, which included thousands of workers, with a significant number of women participating. Speakers at the rally demanded the dismantling of capitalist structures and the end of anti-labour policies. The rally began at Regal Chowk and concluded at the Karachi Press Club. NTUF General Secretary Nasir Mansoor, addressing the gathering, expressed regret over the global chaos caused by capitalist and right-wing governments. He highlighted how these policies have pushed billions into poverty and conflict, warning of the threat of a new form of colonialism emerging from economic instability and trade wars. Gul Rehman of the Workers Rights Movement criticised Pakistan's ruling elite for adopting anti-labour policies similar to their imperialist counterparts. HBWWF General Secretary Zehra Khan condemned the proposed labour code in Sindh and Punjab, stating that it would legitimise the illegal third-party contract system. She pledged strong resistance against its implementation. Chairperson of the Human Rights Commission of Pakistan Asad Iqbal Butt claimed that various elite groups have united to prolong public suffering, while political parties divert attention away from class struggle. The rally concluded with resolutions demanding the removal of anti-worker clauses from labour laws, an end to the contract system, enforcement of minimum wages, and a halt to environmentally harmful projects. The organisers also announced a major workers' sit-in in the city ahead of the federal budget, with the date and venue to be announced soon. "The martyrs of May Day, by sacrificing their lives in Chicago, secured the eight-hour workday for workers around the world - we salute them. There is a need for special legislation in Pakistan to prioritise the rights of women workers. On one hand, women are discouraged from working by their families, and on the other hand, they face contemptuous or even violent behaviour from men in society." These remarks were made by Secretary of the Communist Party of Pakistan Karachi Committee and organiser of the Democratic Women's Association Kulsoom Jamal while addressing a women's rally organised by the Communist Party of Pakistan from Shaheen Complex to the Press Club in connection with May Day.
