 State Taxes, Tax Exemptions, and Elderly MigrationAli Onder and Herwig Schlunk Journal of Regional Analysis and Policy, 2015, vol. 45, issue 01 Abstract: We use 1995-2000 interstate migration data for the elderly population in the U.S. to test how taxes and specific tax exemptions affect migration decisions. We show that the elderly prefer to migrate to states with low inheritance taxes, high property taxes, low amounts of federal revenue transfers, low cost of living, and higher average temperatures. The preference for high property taxes in destination states may be an indication that the elderly prefer loca-tions where local amenities are capitalized into property values, since the elderly tend to be empty-nesters and presumably own properties that are on average smaller and less valuable. We show that exempting pension payments from income tax affects elderly out-migration negatively and significantly, while exempting prescription drug sales from sales tax affects el-derly in-migration positively and significantly. As in the case of the preference for higher property taxes, free-riding behavior may be an explanation for these preferences. Keywords: Community/Rural/Urban Development; Consumer/Household Economics; Financial Economics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:243979 Access Statistics for this article More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.