State Taxes, Tax Exemptions and What They Reveal About Elderly Migration

Posted: 29 Sep 2012  

Ali Sina Önder

University of Bayreuth

Herwig J. Schlunk

Vanderbilt University - Law School

Date Written: May 20, 2011

Abstract

We use the U.S. elderly migration data for 1995-2000 to test how taxes and specific tax exemptions affect migration decisions of the elderly population. We show that the elderly prefer to migrate to states with low inheritance and estate tax, high property tax, low price level, low amount of Federal revenue transfers, high level of local amenities, and high temperatures. In addition, exemption of prescription drugs from sales tax and the existence of pension exemptions affect elderly in-migration positively and significantly.

Keywords: Tiebout Hypothesis, Migration, State and Local Taxes, Tax Exemptions

JEL Classification: H24, H50, H72, H73

Suggested Citation

Önder, Ali Sina and Schlunk, Herwig J., State Taxes, Tax Exemptions and What They Reveal About Elderly Migration (May 20, 2011). Available at SSRN: https://ssrn.com/abstract=2153610 or http://dx.doi.org/10.2139/ssrn.2153610

Ali Sina Önder (Contact Author)

University of Bayreuth ( email )

Universitatsstr 30
Bayreuth, D-95447
Germany

Herwig Schlunk

Vanderbilt University - Law School ( email )

131 21st Avenue South
Nashville, TN 37203-1181
United States
615-322-1527 (Phone)
615-322-6631 (Fax)

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