Yankee Doodle Went to South Carolina
Everyone remembers the childhood rhyme about Yankee Doodle, which a South Carolina Senator is trying to relate to in a new proposed bill. Sen. Stephen Goldfinch has proposed a bill he calls the “Yankee Tax” which would require new residents to pay up to $500 when moving to the state. These new residents would be required to pay two separate one-time fees; $250 for a driver’s license and $250 for vehicle registrations. The money from these fees is to go towards the state’s infrastructure for things such as roads, common community spaces, and more according to Fox Business.
In a statement, Goldfinch said, “Our quality of life has been diminished by the almost 4 million people that have moved here in the last decade. And we anticipate another million people moving here in the next decade. Everybody is concerned about their quality of life." Further, he does not believe this will dissuade anyone from coming and rather just help everyone be “caught up” in regards to contributions to schools, roads, and even green spaces.
So, are Northerners invading the South?
During the pandemic, many U.S. citizens flocked to the South and ended up staying because of work flexibility, lower taxes, and even warmer weather. Who DOESN’T love to work from home, have lower taxes, and get both of those things near a beach? There are also two other states that will have similar legislation proposed on their ballots; California and New York both have legislation to tax people leaving their state. Recently, California has seen an extreme uptick since 2018 with 265 companies relocating their headquarters out-of-state. Fox Business.
It now appears that there is an upward trend of states who are deemed “too expensive, too regulated, and too heavily taxed, both for companies and for workers” to move to states that are the complete opposite, such as South Carolina. Other states that have also seen a rise in businesses and people moving in-state include Texas, Tennessee, and Arizona. But who’s to blame them? Who wouldn’t want to live in a place that has lower taxes, fewer regulations, and warmer weather?
For more information on how this could benefit you, reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc. at (618) 997-3436