[RedState] Blue states are pushing new taxes on high earners as billions in income and thousands of taxpayers move to red states.
In California, New York, Washington, and Michigan, lawmakers are advancing proposals and ballot efforts aimed at top earners. Washington is advancing a tax on income over $1 million, while California is pushing a tax on billionaire net worth. Other states are weighing similar plans, including taxes on residents who leave and widening the scope of income taxation.
IRS migration data from 2022-2023 shows California lost nearly $12 billion in taxable income in a single year, while New York lost $9.9 billion. Florida gained $20.5 billion, and Texas gained $5.5 billion as taxpayers moved and took their income with them.
California lost roughly 230,000 residents over the same period, while lower-tax states gained both population and income at the same time.
New York Gov. Kathy Hochul (D) acknowledged the shift, as RedState previously reported:
"Maybe the first step should be go down to Palm Beach and see who you can bring back home because our tax base has been eroded."
These proposals assume high earners will stay and absorb higher rates. The migration data shows otherwise.
JPMorgan Chase CEO Jamie Dimon has warned about New York’s tax structure:
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