New report highlights the counties that are doing the best and worst in the state.
New Yorkers, New Jerseyans and Californians are rushing to get a taste of the Georgia peach. Transplants from each of those states brought more than $1 billion in annual adjusted gross income (AGI) to Georgia over the past two decades, contributing to a $15.78 billion gain for the state. But that influx was not dispersed evenly. In fact, 57 out of 159 counties are actually losing wealth in Georgia, with DeKalb, Clayton and Richmond leading the pack.
A recent map of Internal Revenue Service and U.S. Census Bureau data, called “How Money Walks: How $2 Trillion Moved Between the States, and Why It Matters,” shows how people and their incomes moved across state and county lines between 1992 and 2013. Overwhelmingly, the states with no income taxes attracted the most wealth, while those with higher income tax rates saw greater losses. Georgia came in at No. 8 out of 27 states that gained wealth.
At the county level, DeKalb lost $2.12 billion to neighboring Gwinnett County, Clayton lost $998.96 million to next-door Henry County, and $561.09 million left Richmond County for Columbia County to the north. Forsyth, Cherokee and Henry counties were the most successful for Georgia, gaining $3.99 billion, $2.41 billion and $1.66 billion in annual AGI, respectively.
Clayton County is a peculiar case. Despite gaining 7,154 new residents (most of them from Fulton County), it lost $1.11 billion in annual AGI. A closer look at the IRS data shows that residents with wealth moved to Florida and other counties around Georgia.
The statewide snapshot is even more revealing: Although Georgia gained a 61,847-person population increase from Florida, the wealth lost to Florida outweighed what Georgia gained. More than $357 million went to the Sunshine State, indicating that Georgians with higher incomes left for a state where their paychecks won’t be taxed. It makes sense, then, that Florida is gaining more wealth than any other state in the country.
While everything from job opportunities to the weather can contribute to a person’s decision to move to another city, the data from “How Money Walks” suggests that business- and wealth-friendly tax climates can be seriously appealing. With a top income tax rate of 6 percent, Georgia has successfully attracted billions in terms of income, but it’s still losing millions to other states.
The 6 Counties Losing the Most Wealth in Georgia:
1. DeKalb County lost $4.12 billion in annual AGI and lost 7,590 residents
2. Clayton County lost $1.11 billion in annual AGI and gained 7,154 residents
3. Richmond County lost $1.05 billion in annual AGI and lost 13,720 residents
4. Muscogee County lost $646.63 million in annual AGI and lost 7,917 residents
5. Bibb County lost $478.79 million in annual AGI and lost 6,434 residents
6. Dougherty County lost $464.92 million in annual AGI and lost 10,833 residents
