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No Country for Old Men (Or Women) — Do State Tax Policies Drive Away the Elderly?

Conway, Karen Smith and Rork, Jonathan C.

Abstract:

Over the last 40 years, state income tax breaks targeting the elderly have grown, often justified by arguments that the elderly move across state lines in response to such tax preferences. Using two complementary sources of elderly migration data and several measures of elderly income tax breaks, we investigate the relationship between these tax breaks and migration. We employ different empirical methodologies that emphasize changes over time, including panel regression models spanning four censuses (1970–2000), and several different socioeconomic groups of elderly. Our results are overwhelming in their failure to reveal any consistent effect of state income tax breaks on elderly interstate migration.

Citation

Conway, Karen Smith and Rork, Jonathan C. (2012), No Country for Old Men (Or Women) — Do State Tax Policies Drive Away the Elderly?, National Tax Journal, 65:2, pp. 313-56

DOI: dx.doi.org/10.17310/ntj.2012.2.03