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Posted: 6:00 a.m. Friday, March 15, 2013

States with no income tax see boost in population growth, jobs

See the best cities for jobs and careers



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By Clark Howard


New data from the Census Bureau shows growth in states that have no state income tax.

For example, Austin, Dallas, and Houston are all located in Texas -- a state with no income tax -- and are all booming thanks in part to the energy sector and a young, educated population.

Other growing cities include Las Vegas and Orlando, Fla. Both are located in states with no income tax. In fact, one of the only growing cities located in a state with income tax is Phoenix, Ariz.

Meanwhile, I told you recently about a Forbes  list of the best places for business and careers. As you might expect, it's heavy with cities in states that have low tax environments to stimulate small business growth.

We are at an unusual inflection point in U.S. history. Take a map of the U.S. and start at the Canadian border in North Dakota. Then take your finger and draw a line coming down through the heart of the country to Texas.

A lot of those jurisdictions your finger ran over have very little unemployment and there are actually high-paying jobs that go unfilled.

When it comes to looking at individual cities, Forbes  reports the single best place to get a job or start a business is Provo, Utah. It has the perfect combo of educational facilities, an economy that supports startups, and other growth opportunities going forward.

In second place, you have Raleigh, N.C. It has universities, Research Triangle park, a well-educated workforce, and an affordable cost of living that is roughly 20% less than the national average. Meanwhile, the state of Texas has 5 places on the Forbes list.

On the flip side, half of the bottom 10 cities are in California. The Golden State has had a terrible time with lack of competitiveness and a lot of native borns leaving because of taxes and regulation. In fact, California's population growth has only been supported by immigration.

The reality is this: Jobs migrate to states that are friendly to capitalism, while they migrate away from places where it is hard to do business.