Tax data straight from the Internal Revenue Service confirmed what many already know — Democratic states New York and California are hemorrhaging population as taxpayers leave for a better life.
The two lost more income tax revenue last year than any other states, meaning their resources are drying up and moving elsewhere.
MyEListing, an online real estate service, compiled the IRS figures as well as identified the recipients of the Democratic states’ lost tax dollars. Not surprising, deep red states Texas and Florida gained the most from the exodus.
California alone blew roughly $340 million in 2021 tax revenue. The site noted the many natural and man-made attractions the state offered but acknowledged that high personal income tax rates are pushing people to other locales.
That’s not to mention the state’s enormous cost of living and oppressive Democratic regime.
The once-Golden State lost well over half a million residents from Jan. 2020 through July 2022. The net loss totaled nearly 700,000 taxpayers, and that had a dramatic effect on the bottom line.
New York posted a large population decline in 2022- they lost more people that California did in 2022. NY first, CA second on population loss.
Wonder why Newsome isn't crying for higher taxes with his record high deficits? He knows more people will leave and his tax base…
— DingoStar64 (@DingoStar64) July 25, 2023
A review of the U-Haul Growth Index showed the destinations of over two million one-way trips by moving truck rentals in 2022. It revealed that California ranked dead last on the index as the need for trucks headed out of the state surged.
It had the dubious honor in 2021 of losing a House seat for the first time since it joined the Union in 1850. That distinction could be repeated if the population continues to drop.
There are many viable reasons why people would flee to greener pastures. California’s cities are reeling under a wave of violent crime, chronic homelessness and drug abuse. Lax prosecutors give all but free rein to the criminal element, leaving downtown businesses to deal with the fallout.
But just a glance at the state’s tax situation explains why many choose to escape. It carries the country’s highest top income tax rate at a staggering 13.3%.
On top of bleeding its residents dry, California is now saddled with massive budget deficits. Democratic Gov. Gavin Newsom revealed in May that the shortfall ballooned to almost $32 billion, about $10 billion over expectations.
Part of the deficit is due to people finding less expensive places to live.
As for positives, Florida reaped a $12.4 billion windfall from new residents while Texas gained $10.7 billion through internal migration. The authors of the study quoted the familiar financial wisdom that “money goes where it is treated the best.”