New York and California saw the largest loss of tax revenue from migration of any state in the nation as citizens departed the deep-blue havens in droves. According to a new study, Texas and Florida also received the most IRS tax benefits from individuals migrating in.
The state lost well over 500,000 inhabitants between January 2020 and July 2022, with those departing outnumbering those moving in by about 700,000.
Effects of California’s Population Decline
California came in last on the U-Haul Growth Index, which assessed more than two million one-way trips last year as demand for trucks leaving the Golden State increased.
The departure from California is having noticeable effects. For the first time since becoming a state in 1850, the state lost a House seat in 2021. Another could be in danger if the population keeps declining.
MyEListing’s findings also show that fewer people lead to a reduction in the tax base in California, which already has one of the highest tax burdens in the nation because of its 13.3% top income tax rate and other onerous taxes.
Gavin Newsom, the governor of California, said in May that the state’s budget deficit had increased to around $32 billion, or approximately $10 billion more than he had predicted in January when he unveiled his initial budget proposal.
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Liberal Politics and Cost of Living Drive Outmigration
The issue might only worsen. According to a recent survey conducted by a group of charitable organizations in California, more than 40% of Californians are thinking of leaving the Golden State.
Nearly one-third of locals claimed that California’s liberal politics were the reason they wanted to move elsewhere. Another significant issue for many is the high expense of living.
Some people have also brought out additional social and cultural aspects, such as the homelessness epidemic that is wreaking havoc in big cities like Los Angeles.
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