In the Chamber of Commerce’s 2023 Business & Economic Mid-year Report, a spotlight has been cast on the substantial income streaming into Florida from Democratic strongholds such as New York, California, and Illinois. The report covers data from July 2021 to June 2022 and provides a clearer understanding of the financial impact of this mass exodus.
The numbers are staggering, with former residents from just five states accounting for more than half of the income migrating southward. Leading the pack is New York, which experienced a staggering loss of $9.8 billion in income, followed by Illinois at $3.9 billion, New Jersey at $3.8 billion, California at $3.5 billion and Pennsylvania at $1.9 billion.
Not only that, but according to IRS migration data, California was the biggest loser of domestic wealth migration, followed by New York and Illinois back in 2020.
New IRS Migration data: #California suffered the worst outflow of money of any state in 2020.
It lost a net $29.1 B in AGI, or 2.0%, while a net of 332K residents moved out. NY and IL were #2 and #3. Via @Wirepointshttps://t.co/C7q7gLyn2x #twill #muniland #illinois #NewYork… pic.twitter.com/BQPwCV2JKq
— Wirepoints (@Wirepoints) April 28, 2023
What’s striking is that all five states are solidly Democratic. All have leftist governors and a dominant presence of liberals in state assemblies. The lack of statewide GOP elected officials in most of these states has allowed Democrats to implement their policies without significant opposition, resulting in the financial fallout they now face.
This financial migration presents a zero-sum game where Florida’s gain translates into substantial losses for these states. The message conveyed by these numbers is quite clear: stop electing Democrats to public office.
Additionally, an interesting trend has emerged. The new residents flocking to Florida tend to lean Republican. With Florida becoming more politically conservative, the Democratic-run states are witnessing a surge in blue voters.
Notably, California, home to a significant portion of the nation’s population, currently claims one-third of the nation’s welfare cases. With hordes of its high earning residents fleeing, they’re taking a taxable income of $3.5 billion along with them — which will only exacerbate the state’s financial challenges.
While the allure of Florida is undeniable, with no personal income tax, low regulations, and a focus on improving education, these Democratic states face the daunting task of retaining their wealthy citizens.
The 2023 Business & Economic Midyear Report highlights the importance of fiscal policies and their impact on state economies, urging voters to consider the long-term consequences of their choices.
For now, Florida stands as an enticing destination for the wealthy seeking to maximize their financial opportunities and escape the political quagmire that currently plagues these Democratic states.