Corporations, of course, have a fiduciary duty to their shareholders to maximize after-tax profits. Does that mean they have a fiduciary duty to domicile in low tax states?
Stephen Moore: Unleash Prosperity Hotline – Kathy Hochul, you may recall the embattled NY governor, made an impassioned “patriotism” plea for rich people to stop moving to Florida.
That got us thinking. Corporations, of course, have a fiduciary duty to their shareholders to maximize after-tax profits. Does that mean they have a fiduciary duty to domicile in low tax states?
There used to be many business advantages for corporations to be headquartered in Silicon Valley and New York City or Chicago - despite the high taxes. But those advantages have all but dissipated. New York City’s hold as the financial capital has disappeared as firms flock to Miami and Dallas. The fastest growing tech centers are in Salt Lake and Austin. Chicago was the city that worked. Now it’s the city that doesn’t work.
We are going to start a shareholder movement to pressure publicly traded companies to engage in domestic inversions and relocate to low-tax states. Here’s the states that corporations should be fleeing:
Top Corporate Income Tax Rates by State (2026)
- New Jersey: 11.5%
- Minnesota: 9.8%
- Illinois: 9.5%
- Alaska: 9.4%
- Maine: 8.93%
- California: 8.84%
