WSJ: High Taxes Spur Middle Class Exodus From Blue States Led By Democrat Governors

As Democrat governors continue to push anti-jobs, high-tax policies, residents are voting with their feet.

The RGA writes:

Democrat governors in blue states from New York to California continue to embrace higher tax burdens that threaten their economic futures. A new opinion piece in today’s Wall Street Journal notes that “in the years to come, millions of people, thousands of businesses, and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states” and that the ongoing middle class exodus from New York, California and other blue states “could puncture large and unexpected holes in blue-state budgets.” As Democrat governors continue to push anti-jobs, high-tax policies, residents are voting with their feet.

Here's more from the Wall Street Journal op-ed: 

As the Trump tax cut was being debated in December, California’s Gov. Jerry Brown called the bill ‘evil in the extreme’ and fumed that it would ‘divide the hell out of us.’ He’s right—but in the end, this change could be good for all the states.

In the years to come, millions of people, thousands of businesses, and tens of billions of dollars of net income will flee high-tax blue states for low-tax red states.

For years blue states have exported a third or more of their tax burden to residents of other states. In places like California, where the top income-tax rate exceeds 13%, that tax could be deducted on a federal return. Now that deduction for state and local taxes will be capped at $10,000 per family.

...

As far as we can see, the only way for blue states to prevent this coming fiscal bloodbath is to start taking tax competitiveness seriously—and to cut their tax rates in response. Progressives should do the math: A 13% tax rate generates zero revenue from someone who leaves the state for friendlier climates.

Blue states ought to be able to lower their taxes and spending dramatically without jeopardizing vital services. Despite its shrinking tax base, New York spends nearly twice as much on state and local government per person ($16,000) as does economically booming Tennessee ($9,000).

Alas, delusional liberal interest groups want blue states to respond to the Trump tax cuts by soaking their rich residents even more. If that happens, our best advice to blue-state residents is simple: Git while the gittin’s good.

3 days, 1 hour ago

Gov. Noem Proclaims Jan. 23-Jan. 29 "South Dakota School Choice Week" as Annual Celebration Launches Nationwide

Gov. Noem has joined a growing list of governors, city, and county leaders nationwide in recognizing Jan. 23-Jan. 29 as School Choice Week.

4 days, 21 hours ago

Tennessee Governor Bill Lee leads letter penned to President Biden on Infrastructure Act

Tennessee Governor Bill Lee and 15 other Republican governors have penned a letter to President Joe Biden asking for more state control in how funds from the Infrastructure Investment and Jobs Act are implemented.

4 days, 23 hours ago

Gretchen Whitmer’s Dark Money Hypocrisy

After preaching 'transparency,' Dem gov partners with dark money nonprofit to raise millions

6 days, 23 hours ago

Gov. Doug Ducey: My budget makes major investments that will leave Arizona even stronger

My 2023 budget invests in key areas like education and water while cutting taxes and paying down debt. That will leave Arizona stronger.

1 week ago

Republican Glenn Youngkin sworn in as governor of Virginia

Republican Glenn Youngkin was sworn on Saturday as the next governor of Virginia, delivering an optimistic message about empowering parents, overcoming COVID-19 and providing economic relief to families and businesses

1 week, 5 days ago

Unemployment agency pegs likely pandemic fraud losses at more than $8.5 billion

Michigan's jobless aid agency lost more than $8.5 billion to suspected fraudulent payments amid record claims and persistent attempts at fraud during the pandemic