The State of California lost nearly $350 million in tax revenues in 2021 due to migration out of the state — a worrisome figure as the state contemplates a new deficit of $32 billion this year.
The real estate website MyEListing.com reported:
California ranks first among states experiencing the worst net negative tax income migration. With a staggering net loss of $343.2 million, the Golden State is witnessing an outflow of high-income earners.
Despite its numerous attractions, from the booming tech industry and world-class universities to beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals. This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California.
These trends affect the state’s economy, especially the real estate and job markets. The departure of high-income earners can decrease demand for luxury real estate and potentially affect the commercial real estate sector. It also impacts job creation, as these high-income individuals often play a significant role in business expansion and entrepreneurial activities.
New York was second, losing $299.6 million; and Illinois was third, with a net loss of $141.7 million.
Gov. Gavin Newsom (D) has focused on attacking conservative states like Florida, but he is losing residents — and tax revenues to those states. MyEListing.com notes that Florida and Texas led all other states in “positive tax migration.” Arizona, currently governed by Democrats, was third.
Newsom enjoyed a budget surplus of nearly $100 billion last year, buoyed in part by federal coronavirus funds that were signed into law by President Joe Biden in 2021.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News and the host of Breitbart News Sunday on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET (4 p.m. to 7 p.m. PT). He is the author of the recent e-book, Neither Free nor Fair: The 2020 U.S. Presidential Election. His recent book, RED NOVEMBER, tells the story of the 2020 Democratic presidential primary from a conservative perspective. He is a winner of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter at @joelpollak.