OPINION:
The latest Census Bureau data on population changes in the United States should have been a wake-up call to lawmakers in blue states and cities.
The data provides even further evidence that “soak the rich” tax policies have incited a blue state meltdown. California, New York and Illinois lost the most population last year. These states have nearly lost a combined 5 million people over the last decade. California and New York could lose three congressional seats by the end of the decade, and Illinois could lose two.
The latest moving van data from U-Haul on where Americans moved to and from in 2023 confirms these relocation patterns.
Moving on up
1. Texas
2. Florida
3. North Carolina
4. South Carolina
5. Tennessee
Moving on out
1. California
2. Massachusetts
3. Illinois
4. New Jersey
5. Michigan
Is it just a coincidence that these are high-tax states?
Democratic governors evidently think so. This year, seven blue states are pursuing even higher tax rates on the top 1% of earners despite the evidence that these policies are detrimental to their residents.
One such state is Washington. Once an importer of talent and brainpower because of it had no income tax, the Democrats who control all the levers of power there just enshrined a 7.5% capital gains tax, and the Democratic-led Supreme Court strangely ruled it was constitutional. This is one of the highest taxes on the sale of assets in the country. Democratic state Sen. Noel Frame wants a 1% annual tax on financial intangible assets — such as cash, stocks and bonds — over $250 million.
And they wonder why one of the world’s richest human beings, Jeff Bezos, has moved to South Florida.
In Vermont, Democrats have just proposed raising the state’s top income tax rate to more than 8%. Pretty soon, Ben and Jerry will be the only rich people left in Vermont — and don’t be surprised if they move out too.
Meanwhile, Maryland Democrats are pushing a “millionaire tax” ($750,000 in annual income and above), a capital tax and a new corporate tax.
California just raised its top income tax rate to the highest in the nation, from 13.3% to 14.4%. The Golden State just moved past New York to reclaim the top income tax spot. California must be so proud. The Democrats in Sacramento also expanded the state’s 1.1% payroll tax.
Meanwhile, Jonathan Williams, a fiscal analyst at the American Legislative Exchange Council, an association of more than 2,000 conservative state legislators, reports that eight red states — Arkansas, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah and West Virginia — are cutting income taxes.
Oklahoma is set to cut rates this year to as low as 2%. Several of these states now have flat taxes, not multiple-tier “progressive” rates. Every state on this list is a red state except Connecticut.
What does all this mean? The blue state deep thinkers can’t see that their “progressive” tax systems are bleeding their states dry. Or else they don’t care.
Once upon a time, it was the Northeast that was the financial and industrial capital of the world. Now Miami, Dallas, Salt Lake City, Nashville, Tennessee, Austin, Texas, Charlotte, North Carolina, and Tampa, Florida, are the hot destinations. The Southeast now produces more gross domestic product than the Northeast.
I call it a blue state dysphoria. They must change their ways or die. So far, their political leaders are choosing the latter course.
• Stephen Moore is a senior fellow at The Heritage Foundation and co-founder of the Committee to Unleash Prosperity.
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