California and New York, two leftist-led states, are experiencing a huge decline in tax revenue as residents continue to flee en masse, opting to move to freer states like Florida and Texas.

California’s Democrat Governor Gavin Newsom’s tyrannical Covid lockdowns began the migration shift. His policies pushed Californians to decide between freedom and repression. California has also seen soaring crime and homelessness, turning the once desirable state into a leftist nightmare.

The LA Times recently published a piece noting that another 40% of Californians are considering leaving the state. One Twitter user shared why staying in California is challenging. “California used to be where the American dream could come to life for so many, myself included. Now tax hikes, higher cost of living, rising crime, homelessness, and burdensome regulation are making life in the Golden State harder.”

Both California and New York rely heavily on the high taxes charged to their wealthy residents and witnessed a huge drop during the current 2023 fiscal year. Data obtained by the Urban Institute and shared via Daily Mail suggests both states have endured a huge drop in revenue, with California losing almost 25% and New York 19% in tax receipts.
However, both Florida and Texas made significant gains in tax receipts following population growth and healthy consumer confidence. Both states are Republican led and rely heavily on sales tax instead of income tax.
As one Twitter user pointed out, blue states led by leftists are actively going after people who have built wealth and are now experiencing a population decline and resulting tax decline. “The American dream is still alive in red states. Blue state has all but erased that dream.”

According to Emily Mandel, an economist at Moody’s Analytics, the data shows Americans are opting out of California and New York politics and policies in favor of better tax rates, “You’re starting to see this divergence. It’s definitely something we’re seeing in the data.”
States that do not rely heavily on income tax saw growth in their sales tax. Florida and Texas are both states that do not collect personal income tax and boast large populations. Six of the eight states that do not collect income tax tracked the data and showed an increase in revenue, making it clear that Americans are weary of being overtaxed and underserved by their state governments and are fleeing to states that provide better economic incentives.

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