Report: The Great State Tax Divergence

In this presentation, attorney and CPA Chad D. Cummings explains the accelerating divergence in state income tax policy across the United States. According to a February 2026 Tax Foundation analysis by Jared Walczak, the middle has collapsed: only twelve states now have top rates between 5% and 7%, down from twenty-one states twenty years ago. Twenty-six states have reduced their top marginal rates (many well below 5%, with several at zero), while six states and the District of Columbia have raised theirs, with several now in double-digit territory and more increases under consideration. Chad breaks down how this growing gap affects pass-through businesses and why high-tax states are experiencing net outmigration of residents and jobs while low-tax states continue to gain. Most importantly, he shows why redomestication is the smartest and cleanest way for business owners to move their existing LLC, corporation, or partnership to a lower-tax state without dissolving the company, without forming a new entity, without losing their FEIN, and without triggering federal taxes. If you're operating in a high-tax state while lower-tax jurisdictions continue cutting rates, this presentation gives you the data and the practical legal solution to protect your business and your income. Learn more: https://www.cummings.law/redomestication/