Came across an interesting paper that looked at state income taxes being an incentive for high earners to move out. Seems intuitive, but I liked how they studied it.
Abstract from the paper:
https://www.aeaweb.org/articles?id=10.1257/pol.20210388
According to study results, implementing higher taxes was not well accepted by many wealthy Americans -- their higher income allows them to be more mobile, and therefore able to seek new residency in states with lower personal income tax or no tax.
Abstract from the paper:
We evaluate how fiscal capacity and migration respond to the introduction of the individual income tax, drawing on new panel data on US states from 1900 to 2010. We find that the introduction of the income tax increased revenue per capita by 12 percent in the short term, 15 percent in the medium term, and 17 percent in the long term. The absolute level of revenue, however, did not significantly change over the long term for post–World War II adopters. To explain this, we show that the introduction of the income tax induced significant outmigration to non-income-tax states by middle- and high-earning households.
https://www.aeaweb.org/articles?id=10.1257/pol.20210388