(ConservativeHub.com) – California and New York were reportedly the two states to have suffered from the greatest loss of tax income back in 2021 due to many of their residents migrating to different states. Many residents have moved to other states, with Florida and Texas bringing in the highest amount of tax revenue, according to MyEListing.com, a real estate portal.
According to their study, they determined that in California, over $340 million was lost in IRS tax revenue in 2021 because of people moving. In their analysis, they noted that while California still had a very large tech industry, and world-class institutions, the high personal income tax rates have driven many individuals to leave California. It said that the high cost of living is also likely influencing the situation.
The second largest decrease was reportedly New York, which lost around $300 million. Other states that lost massive amounts of income include Illinois and New Jersey.
Between the start of 2020 and mid-2022, the number of people who left California compared to those who moved there was around 700,000 people higher. The U-Haul Growth Index also found that in the last year, there were over two million one way trips that were completed.
Fox News reported that California lost a House seat in 2021. This is reportedly the first time that has occurred since it officially became a state. The outlet also reported that earlier this year, California Governor Gavin Newsom stated that the budget deficit in the state was approaching $32 billion.
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