800,000 Set to Flee Blue States Because of High Taxation
Where my blue state Crowderheads be? Let's see those highly taxed, overly regulated hands in the air! According to these economists, you might be moving soon. Especially if you live in New York or California.
We estimate, based on the historical relationship between tax rates and migration patterns, that both California and New York will lose on net about 800,000 residents over the next three years—roughly twice the number that left from 2014-16. Our calculations suggest that Connecticut, New Jersey and Minnesota combined will hemorrhage another roughly 500,000 people in the same period.
Red states ought to brace themselves: The Yankees are coming, and they are bringing their money with them. Meanwhile, the exodus could puncture large and unexpected holes in blue-state budgets. Lawmakers in Hartford and Trenton have gotten a small taste of this in recent years as billionaire financiers have flown the coop and relocated to Florida. As the migration speeds up, it will raise real-estate values in low-tax states and hurt them in high-tax states.
As far as we can see, the only way for blue states to prevent this coming fiscal bloodbath is to start taking tax competitiveness seriously—and to cut their tax rates in response. Progressives should do the math: A 13% tax rate generates zero revenue from someone who leaves the state for friendlier climes.
This shouldn't be shocking to anyone who understands math (see PANIC: California Democrats Worry New Taxes ‘Might’ Cause Mass Exodus and High Taxes Cause Blue States to Lose Congressional Seats). Your state dials up their taxation game until it's no longer affordable to live there. You don't know where the money is going, as Cardi B teaches us. Moving to an affordable state then makes perfect sense. Case closed.
It's not just the obscene taxation driving blue-state peeps away. There's also their governments' preference toward illegals. Prison sentences for possession with the intent to distribute drinking straws. The sidewalks decorated with copious amounts of human poopy. Frankly, these "progressive" states tend to be all-around crapholes.
The exodus might not necessarily be a good thing. Some of the more left-leaning people may bring their leftiness with them. However, one thing this does prove is the left's way of handling business is a massive failure.