An analysis of statics released by the Internal Revenue Service found that New York and California had lost the most income tax revenue as people continue to abandon both states for greener pastures.
The finding was made by MyEListing.com, an online real estate portal, and also identified the greatest tax income beneficiaries of migration.
The group calculated that California had lost about $340 million in 2021 IRS tax revenue.
“Despite its numerous attractions, from the booming tech industry and world-class universities to beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals,” MyEListing wrote.
“This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California,” the site added.
The analysis said that Texas and Florida had received the most benefit in income tax revenue from residents moving in.
Florida garnered an increase of $12.4 billion in taxes from new residents while Texas gained an increase of $10.7 billion in taxes from new residents.
“High-income earners are increasingly choosing the Sunshine State, reflecting an age-old economic axiom: Money goes where it is treated best,” wrote the authors of the study.
The other three of the top five states that lost tax revenue were also majority Democrat states. Illinois lost $142 million in tax revenue, New Jersey lost $135 million, and Massachusetts lost $129 million from residents leaving, according to the study.
Estimates from the U.S. Census Bureau found that California’s population decreased by about half a million people between April 2020 and July 2022. That figure represents about 1.2% of the state’s population.
KTLA-TV pointed out that $340 million is a “drop in the bucket” for California, which has a state budget of about $300 billion.
Here’s a local news report about the incident:
Rich people leaving California took $340m in tax revenuewww.youtube.com
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