California and New York are two leftist states that have seen a massive decline in their tax revenue due to the mass exodus of residents to more liberal states like Florida and Texas.
The tyrannical Covid locksdowns of California’s Democrat governor Gavin Newsom started the migration shift. His policies forced Californians into a choice between freedom and repression. California has also seen an increase in crime and homelessness. The once desirable state is now a leftist nightmare.
The LA Times published an article recently stating that another 40% of Californians were considering leaving the state. One Twitter user explained why staying in California can be difficult. “California was once the place where many Americans could live out their American dreams, including myself. Tax hikes, higher costs of living, homelessness, rising crime and burdensome regulations are making life in California harder.
California and New York both rely heavily on high taxes charged to wealthy residents, and have seen a massive drop in revenue during the current fiscal year 2023. The Urban Institute, which shared the data via Daily Mail, found that both states experienced a significant drop in revenue. California lost almost 25% of its tax receipts and New York lost 19%. However, Florida and Texas saw significant increases in tax receipts due to population growth and a healthy consumer confidence. Both states are Republican-led and heavily rely on sales tax rather than income tax. “The American Dream is still alive in the red states.” “Blue state has almost completely erased this dream.”
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Only two states have seen a decline in tax revenue: New York and California. Both states are actively pursuing wealthy people.
Red states still have the American dream. Blue states have almost completely erased the American dream.
— Andrea E (@AAC0519) April 4, 2023
Emily Mandel, economist at Moody’s Analytics says that the data shows Americans are choosing to opt out of Californian and New York policies and politics in favor of lower tax rates. “You’re beginning to see this divergence.” We can see it in the data. States that don’t rely heavily on income taxes saw a growth in their sales taxes. Florida and Texas, both of which do not collect personal tax, have large populations. Six of the eight state that do not collect personal income tax tracked data and showed a rise in revenue. This shows that Americans are tired of being overtaxed by the state government and are moving to states with better economic incentives.
