Measuring the impact of interstate migration on Federal individual income tax receipts - Brief Article

Taxpayer migration data is one of the most frequently requested data products disseminated by the IRS's Statistics of Income Division. These data, including State-to-State and County-to-County migration, are produced from a collaborative initiative between IRS and the Census Bureau using year-to-year changes in address information from individual income tax returns. This joint effort provides Census with valuable income data and the IRS with a popular data product. This paper will describe the various migration data and their history, it will discuss what they show about the movement of taxpayers into and out of States and counties, and it will provide some practical applications about how the data can be used. In addition, the State-to-State migration data will be analyzed to determine the impact of interstate movement of taxpayers on Federal tax receipts. A panel data set will be produced using the 50 States as a cross-section and 5 years of annual data. A dependent variable will be formed by calculating the ratio of total migrants into each State to the nonmigrant population in each State. This variable will be regressed against Federal tax receipts by State for 1995-1999.

COPYRIGHT 2001 U.S. Government Printing Office
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