Ark Invest's Cathie Wood seems to think President Joe Biden's budget proposal, unveiled on March 9, could have an effect on where people are moving.
She invokes economist Arthur Laffer's 2022 book, "Taxes Have Consequences," to suggest implementation of the proposals might increase the number of people moving to low-tax states, or even overseas.
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"As Art Laffer postulates in his latest book, 'Taxes Have Consequences.' Given Biden’s latest budget proposals, the great migration to low or no tax states like Florida and Tennessee and, in my view, to countries hungry for innovation in Asia and elsewhere is likely to accelerate," Wood tweeted.
Laffer was an economic advisor to Donald Trump's 2016 presidental campaign and worked in the Ronald Reagan administration. He is well known for the Laffer Curve, his controversial theory that lower taxes lead to increased revenue.
Wood's investment management firm runs the Ark Innovation ETF (ARKK) that is heavily invested in new technology.
The fastest growing states are largely in the South.
"The Sunshine State saw the highest net domestic migration gains last year, with its population growing by 1.9 percent," reported The Hill on Feb. 1. "It was followed by Texas, North Carolina, South Carolina and Tennessee, respectively, with regard to domestic net migration totals."
Biden believes the proposed budget would have a positive effect on the economy and the deficit.
"The President’s budget improves the fiscal outlook by reducing the deficit by nearly $3 trillion over the next decade," a White House statement said.
"The budget achieves this deficit reduction while lowering costs for families, investing in our economy and our future, and protecting the most vulnerable Americans because it proposes tax reforms to ensure the wealthy and large corporations pay their fair share and tackles wasteful special interest giveaways," the statement continues.
The Biden budget would be unlikely to pass the House of Representatives, which is currently under Republican control.
