What's Happening?
A new report by Unleash Prosperity reveals that New York and New Jersey have lost a combined $670 billion in resident income over the past decade due to high taxes and crime. The report, using Census and IRS
data, shows that nearly 2 million New Yorkers and 500,000 New Jersey residents have relocated to states with lower taxes, such as Texas and Florida. The economic impact of this migration includes a significant loss in tax revenue and potential political consequences, as both states may lose congressional seats after the 2030 Census.
Why It's Important?
The economic exodus from New York and New Jersey highlights the broader challenges faced by high-tax states in retaining residents and businesses. The loss of income and population can have long-term effects on state economies, public services, and political representation. The report underscores the need for policy changes to address the factors driving migration, such as tax reform and crime reduction. The situation also reflects broader national trends of population shifts and economic realignment.
What's Next?
As the economic and demographic shifts continue, policymakers in New York and New Jersey may need to consider reforms to retain residents and attract new businesses. The potential loss of congressional seats could prompt political action to address the underlying issues. The ongoing migration trends may also influence national discussions on tax policy, crime prevention, and economic development. Stakeholders will be closely monitoring the impact of these changes on state and local economies.
