Crime ridden and over-taxed blue states like Illinois, New York and California, are hemorrhaging citizens and their tax dollars in favor of red states like Texas and Florida.
Wirepoints did an analysis of newly-released Internal Revenue Service migration data and anyone paying attention to the crime, woke policies and tax burden in blue states will not be surprised by the results.
The data used is based on tax returns filed in 2020 and 2021.
This data matters. The loss of a significant portion of the tax base in these states has a cumulative effect in subsequent years. In states like Illinois, facing high public sector pension shortfalls, the impact can be devastating. Wirepoints shares that in New York, “And when the state’s AGI losses are accumulated from 2000 to 2020, it totals $1.1 trillion in cumulative lost income that could have been taxed over the entire period.”
The Gateway Pundit reported that Chicago’s public pension system is in dire straits.
According to a report from Equable Institute, Chicago’s core public pensions, which include municipal, laborers, police, fire and the Chicago Teachers’ Pension Fund, hold more debt than 44 states with a combined pension debt of nearly $48 billion.
Winners and losers
The Sunshine State attracted over $57.9 billion in Adjusted Gross Income (AGI) from 699,000 new residents (tax filers and their dependents) that moved into Florida in 2020. On the flip side, Florida lost $18.7 billion in AGI from 443,000 people who left. On a net basis, Florida came out ahead with 256,000 net new people and $39.2 billion in net new taxable income.
That was a total gain of 3.1 percent of the state’s total AGI ($711 billion).
Texas was the runner up with an AGI income gain of $10.9 billion, followed by Nevada with $4.6billion. North Carolina and Arizona rounded out the top five with net gains of $4.5 billion and $4.4billion, respectively. (See Appendix for top 10 winners of people.)
On the losing side, California suffered the worst outflow of money of any state in 2020. The Golden state lost a net $29.1 billion in income, or 2.0 percent of its AGI, while a net of 332,000residents moved out.
New York was next, losing a net $24.5 billion and 262,000 people. Illinois was 3rd with a net loss of $10.9 billion and 105,000 people. Massachusetts and New Jersey were in 4th and 5th place, with $4.3 and $3.8 billion in income losses, respectively.
READ THE FULL REPORT AT WIREPOINTS.