What's Happening?
A new report from 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 rising crime. New York state alone
has lost over $500 billion, while New Jersey has lost $170 billion. Nearly 2 million New Yorkers and 500,000 New Jersey residents have relocated to states with lower taxes, such as Texas, Florida, and Tennessee. The report highlights the long-term impact of this migration, as the income lost continues to affect the states year after year.
Why It's Important?
The exodus from New York and New Jersey reflects broader issues of governance and quality of life in high-tax states. The loss of income and residents not only affects state tax revenues but also has implications for political representation, as New York is likely to lose four House seats and New Jersey two after the 2030 Census. The situation underscores the challenges faced by states with high taxes and crime rates, as they struggle to retain residents and maintain economic stability.
Beyond the Headlines
The report suggests that the migration is not limited to high-income earners, indicating widespread dissatisfaction with the current state policies. The potential for increased tax rates on the wealthy could exacerbate the outmigration, leading to further economic and political consequences. The findings highlight the need for policy reforms to address the underlying issues driving residents away.
